The rupee strengthened to 67.70 against the dollar on fresh foreign capital inflows and increased dollar selling by banks and exporters.
Weakening of dollar from an 11-month peak against other currencies overseas also supported the rupee sentiment.
The domestic unit opened strong by 14 paise at 67.84 at the interbank forex market today. It hovered in a range of 67.88 and 67.70 before ending at 67.82, up 16 paise at 5 pm local time.
Yesterday, the rupee had appreciated by 10 paise to close at 67.98 against the greenback on sustained selling of the American currency by exporters and local banks.
Meanwhile, the benchmark BSE Sensex ended higher by 257.21 points or 0.73 per cent at 35,689.60.