The rupee ended the fiscal on a positive note by rising 18 paise to 62.49 against the American currency on Tuesday on selling of dollars by banks and exporters on expectation of resumption of foreign capital inflows into equity market.
The Indian currency had ended the last fiscal year at 59.91 against the dollar.
"Sustained capital outflows amid firm dollar in Asian trade capped the rupee rise," a dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced better at 62.62 from previous close of 62.67. It moved in a limited range of 62.67 and 62.48 before ending at 62.49, showing a gain 18 paise or 0.29%.
On Monday, it depreciated by 26 paise or 0.42%.
The benchmark BSE Sensex ended lower by 18.37 points or 0.07% at 27,957.49.
Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth Rs 240.34 crore on Monday, as per provisional data.
The dollar index was quoted higher by 0.49% against its six major global rivals in Asian trade.
Global oil prices fell in Asia as dealers monitored last-ditch efforts between global powers and Iran to reach a deal on Tehran's nuclear programme and ease sanctions imposed on the crude producer.
The US benchmark West Texas Intermediate fell 69 cents to $47.99 while Brent eased 55 cents to $55.74 in mid-day trade.
In the forward market, premia declined further on sustained receipts by exporters.
The benchmark six-month premium payable in September moved down further to 232-234 paise from yesterday's closing level of 235.5-237.5 paise and forward contracts maturing in March 2016 also declined further to 446-448 paise from 453-455 paise.
The Reserve Bank of India fixed the reference rate for dollar at 62.5908 and for the euro at 67.5104.
The rupee firmed up further against the pound sterling to 92.45 from 92.68 on Monday and also advanced against yen to 52.12 per 100 yen from 52.29.
It recovered against the euro to 67.18 from 67.93 on Friday.