The rupee was trading strong by 26 paise at 66.67 in the evening session on fresh selling of dollar by banks and exporters amid firm equity market.
The dollar rose more than half a per cent against both the euro and yen on Friday as measures taken by China to ease this week’s market turmoil helped steady investors’ nerves over market moves there and China’s influence on global financial stability.
The rupee recovered from its three-week low by surging 18 paise to 66.75 against the US dollar in early trade at the Interbank Foreign Exchange today.
Later, it strengthened to 66.59 before being quoted at 6.67 at 4.30 pm local time. The domestic unit hovered in a range of 66.77 and 66.59 in the eveing trade.
Forex dealers said a firm domestic equity market too supported the rupee, but the dollar’s strength against other currencies overseas capped the gains.
Yesterday, the rupee had declined by 11 paise to close at more than three-week low of 66.93 against the US dollar on persistent demand for the American currency from banks and importers amid a sharp fall in equities.
Meanwhile, the benchmark BSE Sensex ended higher by 82.50 points or 0.33 per cent at 24,934.33.