Rupee recovers from 29-month low, up 39 paise

The domestic currency strengthened on fresh selling of dollars from banks and exporters

Recovering from its 29-month lows, the rupee today regained 39 paise to 67.63 on fresh selling of dollars from banks and exporters on the back of recovery in equities despite higher greenback overseas.

The domestic unit resumed higher at 67.80 per dollar as against yesterday's 29-month closing level of 68.02 at the Interbank Foreign Exchange (Forex) market.

Later, it strengthened further to 67.61 per dollar before ending at 67.63, showing a gain of 39 paise or 0.57%.

The domestic currency had dropped by 37 paise or 0.55% in previous two days.

The domestic unit hovered in a range of 67.61 and 67.84 during the day.

However, the dollar index was higher 0.13% against a basket of six currencies in late afternoon trade.

Overseas, the dollar was higher against the euro and the yen in late Asian trade today as investors shed caution following signs that the European Central Bank may provide more stimulus and after a sharp recovery in Tokyo stocks.

Investors are trying to push ahead with dollar purchases, emboldened by improving market sentiment--a move pushing up the dollar against yen and pulling down the euro against the dollar.