The rupee recovered from lifetime lows to close 25 paise higher at 82.75 (provisional) against the US dollar on Thursday, despite global dollar weakness.
Fag-end buying in domestic equities also boosted sentiment, according to forex traders.
However, rising international crude oil prices capped the rupee’s gains, they added.
After hitting a session low of 83.29, the local currency recovered on suspected RBI intervention.
The local currency opened at 83.05 against the US dollar on the interbank forex market, but later fell to quote at 83.29. It also reached an intraday high of 82.72 points.
The rupee recovered all of its losses to close at 82.75 (provisional), up 25 paise from its previous close.
The rupee had hit an all-time low of 83 against the dollar in the previous session.
The 30-share BSE Sensex rose 95.71 points, or 0.16 percent, to close at 59,202.90, while the broader NSE Nifty rose 51.70 points, or 0.30 percent, to 17,563.95.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, fell 0.17 percent to 112.79.
The global oil benchmark, Brent crude futures, rose 1.17 percent to USD 93.49 per barrel.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, offloading shares worth Rs 453.91 crore.
Source:FE