MUMBAI, March 1 (Reuters) - The Indian rupee hit a near three-week high against the dollar on Wednesday after a stronger Chinese yuan sparked a rally in Asian currencies.
The rupee rose 0.20% to 82.50 per dollar, having strengthened up to 82.37 at one point, near its 55-day moving average of 82.3514 and at its highest level since Feb. 10.
There were a "decent" amount of inflows into the market, and the broader sentiment was better, while a pullback in the dollar index helped the rupee, said a dealer at a private bank.
Hence, the local unit is likely to stay in the range of 82.60-83.00 in the near term, Krishnamurthy said, noting that technically, only a break of either side on a daily close basis would trigger a directional move.
Asian currencies and equities rose in response, while the dollar index fell 0.5%.