The rupee wiped off its losses and ended strong at 67.08 on fresh dollar selling by importers. However, the strengthening of the greenback against other currencies overseas restricted the rupee's gains.
The domestic unit opened weak by 2 paise at 67.15 at the interbank foreign exchange market today. It hovered in a range of 67.28 and 66.98 before ending the session at 67.08, up 5 paise at 5 pm local time.
Intraday, the rupee slumped to a fresh 15-month low of 67.28 due to strengthening of the American currency overseas amid sustained foreign capital outflows.
The dollar hovered near a four-month high on Tuesday, backed by rising Treasury yields and broadly strong US economic data, leaving its major rivals such as the euro struggling and others, including the Argentine peso down sharply.
Oil prices retreated from three-and-a-half-year high as investors waited on an announcement by President Donald Trump on whether the US will reimpose sanctions on Iran.
The rupee had closed yesterday at a 15-month low of 67.13 against the US currency due to increased demand for the dollar as crude oil prices zoomed past $75 per barrel level.
Meanwhile, the benchmark Sensex ended up 8.18 points or 0.02 per cent at 35,216.32 in a choppy trade.