The rupee on Wednesday appreciated by 15 paise to close at over one-week high of 60.09 against the American unit following bullish local equities and sustained capital inflows, extending gains for the second straight day.
Dollar selling by exporters and a weak US currency overseas too aided the rupee upmove.
At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced higher at 60.15 a dollar from last close of 60.24, but fell back to a low of 60.1975.
Later, it bounced back and touched a high of 60.05 before concluding at 60.09, up by 15 paise or 0.25%. The 15-paise rise on Wednesday is the rupee's best daily gain since July 11 when it improved by 26 paise. The closing value of 60.09 is its strongest level since 60.07 on July 14.
The benchmark S&P BSE Sensex continued its upward march for the seventh straight session and today closed up by 121.53 points, or 0.47%, at a new record high.
FIIs infused Rs 412.03 crore on Tuesday, as per provisional data with stock exchanges.
The dollar index was down 0.05% against a basket of six major global currencies.
Pramit Brahmbhatt, Veracity Group CEO, said: "Rupee continued to trade strong and appreciated by almost a quarter%. Local equities continued their bull run, which helped rupee trade strong against the dollar.
"However, importer month-end dollar demand restricted the rupee appreciation. The trading range for the spot rupee is expected to be within 59.70 to 60.60."