Mumbai: In restricted trading, the rupee ended marginally higher by three paise to 63.61 against the American currency on mild selling of dollars by banks and exporters on hopes of foreign capital inflows into equities.
The rupee opened lower at 63.66 per dollar at the Interbank Foreign Exchange as against the yesterday's closing level of 63.64 and dropped further to 63.68 on initial dollar demand from banks.
However, it recovered afterwards to 63.55 on selling of dollars by banks and exporters on the back of rise in equity market before ending at 63.61 per dollar, disclosing a marginal gain of 3 paise or 0.05 percent.
It has gained by 23 paise or 0.36 percent in two days.
The domestic unit moved in a range of 63.55 and 63.68 during the day.
The dollar index was trading higher by 0.35 percent against its major global rivals today.
Overseas, the US dollar was higher in early Asian trade while the euro got off to a cautious start with Greece's fate still hanging in the balance.
Oil prices eased in Asian trading today after Greece missed a 1.5-billion-euro (USD 1.7-billion) payment to the International Monetary Fund.
US benchmark West Texas Intermediate for August delivery fell 68 cents to USD 58.79 while Brent crude was down 58 cents at USD 63.01.
Meanwhile, the Indian benchmark Sensex rose further by 240.04 points or 0.86 percent.
Pramit Brahmbhatt, Veracity Group CEO, said, "The rupee traded strong and appreciated by three paise for the day to close at 63.61 on the back of higher domestic equity market."
The trading range for the Spot USD/INR pair is expected to be within 63.30 to 64.00.
In the forward market, the premium ended steady in the absence of market-moving factors.
The benchmark six-month premium payable in December closed unchanged at 226-228 paise while June 2016 contract finished marginally higher at 449-451 paise as against the yesterday's closing level of 449-450 paise.
The RBI fixed the reference rate for the dollar at 63.6223 and for the euro at 70.7671.
The rupee firmed up further against the pound sterling to 99.57 from 100.05 previously and recovered against the euro to 70.63 per euro from 71.20 yesterday.
The domestic unit recouped against the Japanese unit to 51.74 per 100 yen from 51.96 previously.
