On Monday, the Indian rupee has reported a stronger market position, during the afternoon trade, having an influence from the upbeat local shares and the central bank's hefty rate increase last week improved outlook on dollar inflows.

In addition, the Securities and Exchange Board of India has suggested that foreign funds have contributed around $2.9 billion into Indian shares over the past five weeks whereas the local benchmark share index was observed to gain a hike of more than 1%, during the Monday trade, following the various Asian as well as the US debt ceiling deal.

On Friday, when Indian currency was closed, the euro has reserved a place at $1.4 385 versus $1.4449 whereas the dollar index against six major countries has faced a down fall of 0.05% to 73. 860 points, higher from 73.709 points at end of local forex trade, on Friday.

Meanwhile, the State Bank of Indian has surprised its investors as all of a sudden it raised the interest rates by 50 basis points, reflecting unexpected resolve in fighting persistently high inflation despite slowing growth.

While commenting on the market scenario, a dealer at a foreign bank said: "Overall, dollar inflows momentum looks good”.