Indian rupee stood at 48.74/75 per dollar at 10:20 a. m., reporting an increase of 0.3 per cent as compared to its previous close of 48.90/91. Strong position of Asian and domestic stocks and expectations of more investments within next few months marginally pushed the Indian currency.

However, heavy demand by oil companies mitigates the chances of further strengthening of rupee. Oil India ltd, the biggest importer and refiner, is the largest entity to consume dollars for paying oil import bills.

Rupee declined to recent low of Rs 49.21 against dollar on Wednesday.

Indian BSE share index surged 1 per cent getting positive clues of Asian indices led by technology companies. US data showing decline in job cuts in August also strengthened investors' sentiment and raised their confidence level.

Japanese benchmark index Nikkei increased 1.05% with 10,294.45 changed hands while Hong Kong`s Hang Seng index gained 283.83 points supported by strong investor sentiments.