In line with equity market, the rupee recovered by 6 paise on Thursday to end at 67.39 against the American currency on fresh selling of dollars by banks and exporters on the back of good foreign capital inflows.
Foreign portfolio investors (FPIs) and Foreign Institutional Investors (FIIs) bought shares worth a net Rs 265.63 crore on Tuesday, as per provisional data released by the stock exchanges.
The rupee opened almost flat at 67.46 as against Tuesday’s closing level of 67.45 per dollar at the Interbank Foreign Exchange (Forex) market.
The domestic unit hovered in a range of 67.51 and 67.34 per dollar during the day before ending at 67.39, showing a gain of 6 paise or 0.08%.
The rupee had settled lower by 18 paise or 0.26% on Tuesday.
Meanwhile, the RBI fixed the reference rate for the dollar at 67.4972 and euro at 74.8274.
In cross-currency trades, the rupee firmed up further against the pound sterling to finish at 87.81 from 88.67 on Tuesday and recovered against the euro to 74.65 from 75.27.
The domestic currency also moved down further against the Japanese yen to 66.68 per 100 yens from 66.26.
The US dollar index, which tracks the greenback against a basket of six rival currencies, was trading down by 0.05% in the late afternoon trade