Indian Rupee strengthened by 10 paise to 66.37 against the dollar in early trade at Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amid higher opening in the domestic equity market.
Extending its gains for the second consecutive day, the Indian rupee moved up by another 3 paise to close at 66.44 on selling of US dollars by banks and exporters on the back of lower greenback value in the overseas market.
The Indian rupee resumed lower at 66.50 as against the last closing level of 66.47 per dollar at the Interbank Foreign Exchange (Forex) market on initial dollar demand from banks and importers.
However, it recovered from initial losses to 66.33 on fresh selling of dollars by banks and exporters on the back of sharp recovery in the equity market before ending at 66.44, showing a gain of 3 paise or 0.05 per cent.
It has gained by 22 paise or 0.33 per cent in last two trading days.
The domestic currency hovered in a range of 66.33 and 66.50 per dollar during the day.
The dollar index was down by 0.0053 per cent against a basket of six currencies in the late afternoon trade.
The RBI fixed the reference rate for the dollar at 66.3925 and euro at 75.7538.
In cross-currency trades, the rupee ended lower against the pound sterling at 94.59 from 93.81 on last Thursday while recovered marginally against the euro to 75.78 from 75.81.
The Indian rupee dropped further against the yen to 61.43 per 100 yens from 61.35 previously.