In line with a spectacular rally in equities, the rupee on Wednesday surged 15 paise to close near a fresh 21-month high of 64.11, the third straight session of gains, energised by positive global cues.
This is the highest closing for the rupee since August 10, 2015, when it had ended at 63.87.
Frantic unwinding of long dollar positions by speculative traders ahead of key event in the US also largely supported the upmove, a forex dealer said.
The momentum also got a push on growing expectations of robust foreign inflows to India sparked by a renewed optimism about the US economy and waning anxiety over the European political landscape.