The rupee snapped its two-day losing streak against the American currency, firming up by 15 paise to close at 62.36 per dollar on fresh selling by banks and exporters on the back of lower dollar in the overseas markets.
The rupee opened sharply higher at 62.38 per dollar against the last closing level of 62.51 at the Interbank Foreign Exchange (Forex) market and firmed up further to close at 62.36 per dollar, showing a gain of 15 paise or 0.24% from its Monday's close.
The domestic currency had dropped by 27 paise or 0.43% in the previous two trading sessions.
It hovered in a range of 62.3600 per dollar and 62.4450 during the day.
Good capital inflows and lower dollar overseas mainly boosted the rupee value, a dealer said.
Foreign portfolio investors bought shares worth Rs 417.01 crore on Monday, as per provisional data.
On the global front, in New York the dollar snapped its six-straight session gains against the basket of currencies in early trade, after retail sales data failed to meet market expectations.
The dollar index, a gauge of six major global rivals, was up by 0.40% today.
However, the dollar was up against the yen in Asian trade today, with dip buying supporting the greenback, while slower growth in China weighed on the Australian dollar.