The rupee today gained 4 paise to close at 45.63/64 against the US dollar on dollar selling by exporters and firm equity markets.
Sustained outflows of funds, however, restricted the rupee rise, dealers said.
At the Interbank Foreign Exchange (Forex) market, the local currency opened slightly lower at 45.70/71 a dollar from yesterday's close of 45.67/68. It concluded the day at 45.63/64.
Dealers attributed the initial fall in the rupee to month-end dollar demand, especially from oil refiners.
Alpari Financial Services(India) CEO Pramit Brahmbhatt said, "The rupee ended slightly strong against the US dollar, mainly taking cues from global markets where dollar traded weak against the major currencies. Local equities also closed up by almost 1 per cent, which helped the rupee gain."
The dollar index was down by over 0.5 per cent against a basket of currencies and New York crude oil was trading near $85.5 a barrel in European market today.
The Bombay Stock Exchange benchmark Sensex ended higher by nearly 158 points or 0.96%.