Consolidating its strong recovery, the rupee today rose by another 22 paise to 65.28 a dollar on sustained unwinding of American currency by exporters.
The spectacular rupee turnaround was seen despite highly bullish greenback overseas and steady capital outflows.
Overall forex market sentiment was backed up by the government announcement that it will stick to its fiscal deficit target of 3.2 per cent of the GDP.
The rupee came under tremendous pressure of late and hit fresh multi-month lows. The home currency plunged to a fresh 6-1/2 month closing low of 65.72 on Wednesday.
On the other side, the US dollar traded broadly higher against its major trading rivals in response to the rising optimism following the tax reform proposal by the Trump administration.