Rupee hits fresh 2-yr high of 63.65 against dollar

The rupee strengthened by 5 paise to trade at a fresh two-year high of 63.65 against the dollar, buoyed by hopes of more capital inflows, coupled with more selling of the American currency by banks and exporters.

The dollar's muted show against other currencies overseas added to the rupee value, dealers said.

Yesterday, the rupee had surged 37 paise in its best single-day show this year to breach the psychological 64- level, ending at a fresh two-year high of 63.70. This followed the RBI lowering the repo rate by 0.25 per cent.

Meanwhile, the benchmark BSE Sensex dropped by 78.64 points, or 0.24 per cent, to 32,398.10 in early session.