The rupee was trading strong at 64.76 due to dollar by exporters and banks amid a strong domestic equity market.
The rupee sentiment was also lifted as the dollar remained flat against other currencies overseas.
The domestic unit opened flat at 64.78 at the Interbank Foreign Exchange market today. It hovered in a range 64.79 and 64.71 before quoting at 64.76, up 2 paise at 3.15 pm local time.
Yesterday, the rupee had shed 4 paise to close at 64.78 on fresh demand for the dollar from banks and exporters amid geopolitical concerns arising out of North Korea’s missile launch.
The dollar's bounce stalled on Thursday after the US Federal Reserve's policy minutes failed to provide a clear picture of future interest rate increases, although investors were reluctant to add bearish bets before some key US data.
The dollar was broadly flat at 113.32 Japanese yen in early trading after rising more than 1 per cent this week. It was at $1.13495 per euro.
Meanwhile, the benchmark Sensex was trading higher by 110.05 points or 0.35 per cent at 31,355.61.