Despite heavy capital outflows in the domestic equity market, the rupee closed 12 paise higher against the American currency at 62.22 driven by selling of dollars by banks and exporters amid thin volumes of trade.
It had closed at 62.34 on Wednesday. On Thursday, the currency market had remained closed.
Forex dealers said market participants bet against the dollar ahead of talks between Greece and Eurozone on bailout terms.
The rupee opened higher at 62.22 per dollar on the Inter-bank foreign exchange (forex) market.
The Indian unit weakened marginally to 62.28 due to heavy capital outflows during the day. BSE-benchmark Sensex ended at 29,231.41, weaker by 230.86 points (0.78 per cent) over its previous close.
The unit later recovered to 62.20 on sustained dollar selling by exporters before ending at a near opening level of 62.23 gaining about 0.20 per cent. The rupee traded in a narrow range of 62.20 and 62.28 a dollar during the day.
The 10-year benchmark 8.40 per cent government security maturing in 2024 softened a tad to 7.69 per cent from Wednesday’s close of 7.71 per cent. The prices ended at Rs 104.66. Bond prices and yields move in the opposite direction.