Advancing its gains for the third straight session, the rupee scaled a near five-month high of 72.98 against the US dollar on Thursday in line with the buoyant equity market and sustained foreign fund inflows.
At the interbank forex market, the rupee was 7 paise higher to trade at a level not seen since September 1, 2020.
On Wednesday, the rupee had settled at 73.05 against the American currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.18 per cent to 90.31.
On the domestic equity market front, the BSE Sensex was trading 277.80 points or 0.56 per cent higher at 50,069.92; and the NSE Nifty was up 84.35 points or 0.58 per cent at 14,729.05.
Foreign institutional investors remained net buyers in the capital market as they purchased shares worth ₹2,289.05 crore on Wednesday, according to exchange data.
Brent crude futures, the global oil benchmark, rose 0.36 per cent to USD 55.89 per barrel.