Recovering from early losses, the rupee on Friday ended marginally higher at 64.81 against the US dollar by gaining one paisa due to fag-end selling pressure on greenback from banks and exporters.
Persistent foreign capital inflows also boosted the rupee sentiment.
The rupee resumed lower at 64.87 per dollar as against yesterday's level of 64.82 at the Interbank Foreign Exchange (Forex) market and dropped further to 65.02 in view of initial dollar demand from banks and importers.
However, it recovered afterwards to 64.80 before ending at 64.81 per dollar, showing a mere gain of one paise or 0.02 per cent on fag-end selling of dollars on the back of strong equity market.
It has gained by 37 paise or 0.57 per cent in three days. The domestic unit hovered in a range of 65.02 and 64.80 during the day.
The dollar index was traded higher by 0.20 per cent against a basket of six currencies in the late afternoon trade.
The US dollar was well supported against the basket currencies in early Asian trade after rebounding from 7-week lows thanks to stronger-than-expected US inflation data and after European Central Bank policy maker Ewald Nowotny raised expectations for further eurozone easing.
Meanwhile, the Indian benchmark Sensex rose by 204.46 points or 0.76 per cent.
