The rupee recovered from all-time lows to close at 83.33 against the US dollar on Thursday, gaining 7 paise as the greenback weakened in the overseas markets following signals that rate hikes by the US Federal Reserve were over.
A stellar rally in domestic equities fuelled by foreign fund inflows also boosted the rupee sentiment.
However, dollar buying by state-run banks and a rise in oil prices capped the rupee gains, forex traders said.
At the interbank foreign exchange market, the rupee opened strong at 83.30 against the last close of 83.40, the lowest closing level against the US dollar.
The rupee moved in a tight range of 83.35 and 83.27 in the day trade.
It finally closed at 83.33, up by 7 paise over the previous close. -- PTI