MUMBAI: The Indian rupee rose for a second consecutive session, boosted by dollar selling by corporates and custodian banks, although month-end dollar demand from oil firms could limit a sharp rally in coming days.

Gains in the rupee tracked a rally in Indian shares as a drop in global crude prices sparked hopes of reduced inflationary pressures. The rupee closed at 62.50/51 per dollar compared to 62.87/88 on Friday. The unit moved in a 62.44 to 62.70 range during the session.

Three traders said dollar inflows included those tied to Mylan Inc’s purchase of a unit of Strides Arcolab Ltd. The deal was valued at around $1.6 billion when announced in February.

However, expected dollar purchases from oil companies are expected to curb rupee gains. Meanwhile, the Reserve Bank of India said late on Friday it would end a concessional swap rate offered to banks raising certain types of funds abroad at the end of November, although loans in progress would be extended by one month.

J.P.Morgan estimated that state-run oil companies were sourcing 60 percent of their dollar demand since Oct. 18 in markets, and not from a special window provided by the central bank, according to a report on Friday.

In the offshore non-deliverable forward PNDF, the one-month contract was at 62.93 while the three-month was at 64.02.