Mumbai: The rupee on Thursday ended higher by 18 paise at 63.64 against the US dollar on fresh selling of the American currency by banks and exporters amidst weakness of the greenback in overseas markets.
Good foreign capital inflows also boosted the rupee value against the dollar, a forex dealer said.
The rupee resumed higher at 63.73 as against the last closing level of 63.82 at the Interbank Foreign Exchange (Forex) and firmed up further to 63.62 before concluding at 63.64, disclosing a gain of 18 paise, or 0.28 percent.
Yesterday, the domestic currency had dropped by 15 paise, or 0.24 percent, against the dollar.
The rupee hovered in a range of 63.62 and 63.82 per dollar during the day.
The dollar was lower against the yen in Asian trade today, with its upside capped by profit taking and selling by Japanese exporters after a recent rally that brought the greenback to a two-month high.
The dollar index, a gauge of six other major global rivals, was trading lower by 0.54 percent.
Besides, the minutes of Federal Reserve's April meeting released overnight showed that the central bank officials doubted they would be ready to raise short-term interest rates by mid-year.
Meanwhile, the S&P BSE benchmark Sensex ended lower by 27.86 points, or 0.10 percent, at 27,809.35.
"The rupee traded strong and appreciated by 18 paise during the day to close at 63.64. It started the day on a positive note with the help of higher opening in the domestic equity market", Veracity Group CEO Pramit Brahmbhatt said.
The trading range for the Spot USD/INR pair is expected to be within 63.20 to 64.00.
In the forward market, the premium moved down further on sustained receivings by exporters.
The benchmark six-month premium payable in October fell to 199.5-201.5 paise from 204.5-206.5 paise yesterday while forward contracts maturing in April 2016 also declined to 421.5-423.5 paise from 426-428 paise.
The Reserve Bank of India fixed the reference rate for the dollar at 63.7000 and for the euro at 70.6688.
The rupee fell against the pound sterling to 99.76 from 99.00 yesterday and dropped against the euro at 70.93 from 70.80 previously.
However, the rupee firmed up further against the Japanese currency at 52.55 per 100 yen from 52.75 yesterday.
