The rupee was trading up by 39 paise to quote at 65.02 against the US currency in the evening deals on sustained bouts of dollar selling by banks and exporters amid weakness in dollar overseas.
“Continued capital inflows and rally in domestic equities influenced the rupee sentiment,” a forex dealer said.
Earlier, the rupee opened higher at 65.30 per dollar against yesterday’s level of 65.41 per dollar at the Interbank Foreign Exchange (Forex) market.
It hovered in the range of 65.36 to 64.98 per dollar during the afternoon deals before quoting 65.02 at 4.40 pm local time.
The dollar was down 0.2 per cent at 120.03 yen, pulling back from the day’s high of 120.36.
The dollar weakened against major currencies yesterday as expectations of a Fed rate hike before year-end ebbed.
Meanwhile, the benchmark BSE Sensex ended higher by 102.97 points or 0.38 per cent at 27,035.85.