Extending the gains for the second day in a row, the rupee closed at 50.00/02 against the US dollar on anticipation of capital inflows in the wake of surge in Asian stock markets.


A leading trader in foreign exchange said banks were selling dollars either on RBI's instructions or on their own as they feel there is ample liquidity in the system, helping the rupee to gain.


The rupee strengthened past 50 per dollar in early trade on hopes of some foreign inflows into the local share markets. Foreign fund flows have been the key factor determining the rupee's direction in the last two years.


Capital outflows to the tune of $13.6 billion so far in 2008 have dragged the rupee down more than 22 per cent against the dollar.


In active trade, the domestic currency resumed higher at 49.91/95 a dollar and later moved in a range between 49.78 and 50.10.


It finally ended at 50.00/02, a gain of 15 paise. The rupee premiums on forward dollar ended lower on sustained receiving by exporters.


The benchmark six-month forward dollar premium payable in May ended at 63-66 paise, lower from 64-67 paise on Tuesday and the far-forwards maturing in November also closed down at 85-88 paise from 92-94 paise previously.