The rupee rose 11 paise to close at 75.26 against the dollar as heavy buying in domestic equities strengthened investor sentiment. Fresh foreign capital inflows further helped the domestic unit post gains for a second straight day, forex traders informed news agency PTI.
However, rising crude oil in the international markets kept a check on the rupee's gain.
Brent crude futures rose 1.30 per cent to $84.26/barrel.
The local currency opened at 75.27 against the dollar and oscillated between 75.20 to 75.37 during trade on Thursday. It eventually closed at 75.26 against the dollar, 11 paise lower than its previous close. It had closed at 75.37 against the dollar at close on Wednesday.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, dipped 0.28 per cent to 93.81.
BSE Sensex ended the day 568.90 points or 0.94 per cent higher at 61,305.95. NSE Nifty rose 176.80 points or 0.97 per cent to close the day at 18,338.55
(With inputs from PTI)