Dollar selling was so strong that even a weak trend in local equities and a firm dollar overseas could not stem the rupee's rise, forex dealers said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced higher at 61.80 a dollar from previous close of 61.92. It was trapped in a narrow range of 61.75 almost two-week intra-day low and 61.90 before concluding at 61.77, logging a rise of 15 paise or 0.24 percent.
This was its strongest close since 61.76 on November 21. In the previous two sessions, the rupee had softened by four paise or 0.06 percent.
The local currency also took cues from government's 5 percent stake sale in SAIL, for an estimated Rs 1,700 crore, generating a robust demand among investors with the offer getting subscribed more than two times today.
The Indian stock benchmark S&P BSE Sensex, however, fell back by 104.72 points, or 0.37 percent. FPIs/FIIs had injected USD 103.13 million yesterday as per Sebi data.
The dollar index, an indicator of other six major global rivals, was up by 0.27 percent.