The rupee was trading strong by 8 paise at 66.53 in the afternoon session on fresh dollar selling by banks and exporters amid weak equity market.
The rupee recovered from a two-week low by rising 10 paise to 66.51 against the dollar at the Interbank Foreign Exchange market in early trade.
It hovered in a range of 66.59 and 66.42 before being quoted at 66.53 at 12.30 pm local time.
Dealers said fresh selling of the American unit by exporters and banks supported the domestic currency but the dollar’s strength against other currencies overseas, capped the rupee’s gain.
The rupee had plunged by 47 paise to settle at a two-week low of 66.61 against the American currency yesterday on heavy demand for the greenback from importers and banks largely impacted by global economic and political headwinds.
Meanwhile, the benchmark BSE Sensex was trading lower by 27.52 points or 0.11 per cent at 25,595.83.