The rupee was trading strong by 11 paise at 62.70 on increased dollar selling by banks and exporters amid weak dollar overseas on tepid US manufacturing data.
The rupee opened strong by 9 paise to 62.72 against the dollar in early trade at the Interbank Foreign Exchange market. It further strengthened to 62.67 before being quoted at 62.70 at 4.40 pm local time.
The local currency hovered in the range of 62.67 and 62.80 in the afternoon trade.
Forex dealers said sustained capital inflows and a firm domestic equity market boosted the rupee sentiment.
Yesterday, the rupee had gained 16 paise to end at 62.81 against the American currency on fresh selling of dollar.
Meanwhile, the benchmark BSE Sensex was trading higher by 92.15 points or 0.32 per cent at 28,529.86.