The rupee was trading strong by 39 paise at 61.44 against the dollar at 4.24 p.m. local time at the Interbank Foreign Exchange market today due to dollar selling by banks and exporters.
After recovering from over seven-month low by gaining 19 paise to 61.64 against the US dollar in early trade, the domestic unit hovered in the range of 61.43 and 61.74 in the afternoon trade.
Forex dealers said besides fresh selling of the American currency by exporters and banks, a firm domestic equity market supported the rupee but the dollar’s strength against other currencies overseas, capped the gains.
The rupee had plunged by 42 paise to close at over seven-month low of 61.83 against the greenback yesterday on heavy capital outflows and a spike in demand for the US dollar.