The rupee today strengthened further against the American currency by surging 16 paise to end at 68.07 on fresh selling of dollars by banks and exporters on the back of a sharp recovery in the equity market despite higher greenback overseas.
The rupee resumed higher at 68.20 against the dollar at the Interbank Foreign Exchange (Forex) market and strengthened further to 68.01 before concluding at 68.07, showing a gain of 16 paise. It ended on Friday at 68.23.
The domestic unit hovered in a range of 68.20 and 68.01 during the day. Meanwhile, the dollar index was up 0.14 per cent against a basket of six currencies in the late afternoon Asian trade.
Overseas, the US dollar was mostly up against its major rivals in Asian trade.
Investor sentiment has turned positive after a rally in commodities and banking shares that elevated European markets and US stocks Friday. The positive mood has translated into a sharp recovery in the benchmark Nikkei Stock Average by 7.16 per cent.
Further, a firm domestic equity market influenced the rupee uptrend.