Snapping two days of losses, the rupee today recovered by 14 paise to close at 68.10 per dollar on fresh selling of the US currency by banks and exporters in view of weakness in greenback overseas amid a revival in domestic equities.
The domestic currency opened flat at yesterday's closing level of 68.24 at the Interbank Foreign Exchange market and declined immediately to 68.25 on month-end dollar demand from importers.
However, it recovered to 68.0575 in the afternoon trade on fresh selling of dollars due to lower dollar in overseas market as well as recovery in the equity market, before ending at 68.10, showing a gain of 14 paise or 0.21 per cent.
It had dropped by 50 paise, or 0.74 per cent, in the previous two days.
The domestic unit hovered between 68.0575 and 68.2500 during the day.
Meanwhile, the dollar index dropped by 0.47 per cent to 102.73 against a basket of six currencies in the late afternoon trade.
Overseas, the dollar weakened against the yen early today, weighed down by US yields slipping to two-week lows and an ebb in risk appetite that favoured the safe-haven Japanese currency.
Losses for the dollar built today as investors sought out perceived safe-haven currencies such as the Japanese yen a day after surprisingly weak home-sales data in the US.
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