The rupee was trading strong at 64.38 in the evening session on fresh selling of the US currency by exporters amid foreign fund inflows and a firm domestic equity market.
Besides, the dollar's weakness overseas also supported the rupee, forex dealers said.
The domestic unit opened strong by 14 paise at 64.49 at the Interbank Foreign Exchange market today.
It hovered in a range of 64.57 and 64.33 before quoting at 64.38, up 25 paise at 4.35 pm local time.
In the previous trading session on Tuesday, the rupee had tumbled 32 paise to end at a fresh three-week low of 64.63 against the dollar due to frantic demand for the American unit from importers. This was the rupee’s biggest single-day loss this year.
Forex market had remained closed yesterday on account of ’Buddha Purnima“.
Meanwhile, the benchmark BSE Sensex ended at 30,250.98, up 2.81 points or 0.01 per cent.
In the overseas market, the dollar edged lower after notching an eight week high against the yen on Thursday in Asian trade, while the New Zealand dollar tumbled after its central bank suggested a tightening was further out than the markets had priced in.
The dollar was slightly down on the day at 114.14 yen after earlier rising as high as 114.37, its highest since March 15.