Rupee extends rally, some analysts see limited upside potential

The rupee last traded at 81.5750 per U.S. dollar, up from 81.7850 in the previous session and its highest level in more than a month. On Tuesday, the local currency climbed 0.7%, scaling the 82-82.20 levels that traders were watching.Interbank traders cited the rupee playing catch-up after a period of underperformance versus its Asian peers, stop losses and an improving flows outlook among the reasons for its unexpected jump over the last two sessions.