The rupee was trading strong by 4 paise at 66.82 in the afternoon session on fresh dollar selling by banks and exporters.
Forex dealers said weak economic data and dollar’s strength against other currencies overseas limited the rupee's gains.
Earlier, the rupee opened higher by 6 paise to 66.80 at the Interbank Foreign Exchange market. However, it fell to 66.92 before being quoted at 66.82 at 2.25 pm local time.
The domestic unit hovered in a range of 66.92 and 66.72 in the afternoon trade.
The rupee had slipped five paise to close at 66.86 against the greenback in yesterday’s trade on persistent dollar demand from importers amid fall in equity market.
Meanwhile, the benchmark Sensex was trading higher by 180.30 points or 0.73 per cent at 24,862.33.