Persistent foreign capital inflows also boosted sentiment.
Traders said appreciating rupee against the American currency made imports of dollar denominated precious metal cheaper, which mainly kept pressure on bullion prices.
The rupee had lost 10 paise to close at 21-month low of 64.26 against the greenback in Tuesday's trade.
Forex dealers said rebound in domestic stock markets also helped the rupee strengthen against the dollar.
The dollar firmed up against some global currencies.
To provide exporters/importers greater flexibility in risk management, RBI enhanced the limit available to exporters to 50 per cent
Continuing its range-bound movement for the fourth session, the rupee today closed up by two paise at 59.25 ahead of industrial output and retail inflation data.
The rupee fell to more than one-month low of 65.75 against the US dollar on Thursday.
Traders said subdued demand from jewellers and retailers at prevailing levels and a weak global trend led to fall in gold and silver prices.
In overseas trade, the American currency traded lower against the yen and the euro in an Asian session as well as modest profit-taking after recent sharp gains
The Indian unit opened sharply higher at 64.80 as against Wednesday's closing level of 65.12.
Domestic equity markets opened with losses which capped the rupee gains.
The rupee appreciated further on Thursday, adding 106 paise to 66.01 against the dollar, after steps taken by new Reserve Bank of India Governor Raghuram Rajan to attract US currency inflows boosted market sentiment.
Since most Indian firms have kept their forex exposure unhedged, credit profile of companies in the highly sensitive sectors such as oil & gas, metal & mining, airlines could weaken substantially, says Anup Roy.
In the currency markets, the rupee lost another 10 paise to close at 1-week low of 63.54 against the US dollar
The rupee ended marginally higher by two paise at 62.24 against the dollar on Wednesday.
The rupee extended gains for the second straight session against the US currency by firming up 21 paise to close at 64.82 a dollar.
The currency lost six paise on sustained dollar demand from importers.
Ending a four-day upmove, the rupee on Tuesday retreated four paise from its 11-month high levels to close at 58.63 against the dollar on fresh demand for the US currency from importers, amid some profit-booking in stocks.
Dollar gained against major currencies overseas.
In cross-currency trades, the rupee recovered sharply against the pound sterling to finish at 93.13.
There's sustained demand for the American currency from importers and banks
TCS is expected to report a 5 per cent QoQ (USD) growth in revenues, highest in our coverage, while Wipro's IT Services revenue growth could be closer to 1.1 per cent QoQ (USD terms)."
The domestic unit hovered in a range of 66.45 and 66.61 per dollar during the day.
Modi wants the BJP to gets an additional 10% of the vote share from what it won in 2019. Plans are afoot to get new faces to replace MPs with poor chances of winning. Sources say more than 100 MPs are like to be axed, notes Modi biographer Ramesh Menon.
Sustained inflows of foreign funds supported the rupee
In the global market, the US dollar index, which tracks the greenback against a basket of six major rivals, was up by 0.33 per cent.
Foreign fund inflows and a higher opening in the domestic equity market supported the domestic unit
The rupee had shed 13 paise to close at 64.04.
The dollar maintained its bullish momentum in Asian and early European trade
Increased month-end demand for the US currency from importers put pressure on the rupee
'Without a poverty line, how are we to know whether poverty is the same, or it has come down or it has gone up?'
The rupee had eased by 2 paise to close at fresh 2-month low of 62.78.
Rising for the second session, the Indian rupee on Thursday climbed by 50 paise to nearly four-week high of 62.67 against the greenback on persistent selling of dollars by banks and hopes of capital inflows in view of a strong equity market.
Of the 3,893,149 registered applicants on the MP Rojgar portal, only 21 individuals have been successfully placed in government and semi-government positions since April 2020.
The rupee's fall against the dollar is bad news for companies which have increased their exposure to foreign currency loans in recent years.
Asian Development Bank will, for the first time, tap the Indian debt market in March to raise a little over Rs 4,500 crore (Rs 45 billion) through rupee bonds, which would be used for assisting private companies engaged in core sector.
The rupee had dropped 15 paise or 0.22 per cent yesterday.
Sharp rate hike in Russia further raised concerns about the global economy.
In the last 3 months, rupee has depreciated 16% against dollar.
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