Snapping its three-day losing streak against the American currency, the rupee recovered by three paise to close at 67.65 on fresh selling of dollars by banks and exporters amid a recovery in equities.
The domestic unit resumed slightly higher at 67.67 per dollar against Monday’s closing level of 67.68 at the interbank Foreign Exchange (Forex) market.
Later, it gained further to 67.52 on sustained bouts of dollar selling from banks before ending at 67.65, showing a gain of three paise or 0.04%.
It had dropped 83 paise or 1.24% in previous three trading days.
It hovered in a range of 67.52 and 67.74 per dollar during the day.
The domestic unit hovered in a range of 67.74-67.60 during morning deals.
The dollar index was higher by 0.11% against a basket of six currencies in early trade on Tuesday.
Overseas, the dollar rose against the yen in Asian trade on Tuesday in the late afternoon trade, keeping pace with a gain for Tokyo stocks, and as investors weighed up China economic data.
The US currency gained traction after the release of closely-watched China economic data.
China’s gross domestic product expanded 6.8% from a year earlier in the October-December quarter, compared with a market consensus for 6.9% growth. Last year, China recorded a pronounced deceleration in growth with a 6.9% pace, the weakest in a quarter century.