The rupee wiped off its early losses and was trading strong by 28 paise at 61.06 against the dollar at 3.15 p.m. local time after S&P revised its outlook on India to stable from negative.
The domestic unit resumed higher at 61.46 per dollar against yesterday’s closing level of 61.34 at the Interbank Foreign Exchange (Forex) market.
It hovered in the range of 61.01 and 61.61 per dollar during the afternoon trade.
Crude oil prices rose in early trade, though hefty supplies capped the price gains and outweighed concerns that rising tensions in West Asia could disrupt supply.
In New York, the US dollar held near a four-year high against its major rivals in early trade, and further gains looked likely for the currency as it boasted its biggest yield advantage over the euro in 15 years.