Yesterday, the rupee had gained 22 paise to end at a two-week high of 64.89 against the dollar, cashing in on positive sentiment after Moody's upgrade of India's credit rating.
Globally, the dollar dipped against its peers today, weighed down as U.S. Treasury yields failed to rise despite increasing investor risk appetite in broader financial markets.
The dollar index against a basket of six major currencies was 0.05 per cent lower at 93.896.
The index fell back from a one-week high of 94.165 overnight after a rally triggered earlier this week by a sagging euro stalled as long-term US Treasury yields continued inching lower.
Meanwhile, the benchmark BSE Sensex rallied 111.64 points, or 0.33 per cent, to 33,589.99 in early trade. But it gave up some of the gains in early noon trade. (With Agency Inputs)