In the overseas market, the dollar fell against the Pound Sterling in the late trade as voters went to the polls in a landmark referendum on whether the UK should stay in the European Union.
Hopes of more foreign funds on the back of sharp recovery in domestic equity market also boosted the value rupee against the dollar, a forex dealer said.
The domestic unit hovered in a range of 67.2375 and 67.44 during the day.
Yesterday, the rupee ended steady against the dollar.
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The dollar index was trading down 0.41 pct against a basket of six currencies in the late afternoon trade.
The RBI fixed the reference rate for the dollar at 67.3707 and euro at 76.3776.
At overseas, the pound advanced to a six-month high
against the dollar in early Asian trade after the latest polls favoured Britain remaining in the European Union, just hours before referendum voting was due to open.
The euro also gained, while the yen weakened across the board after the latest opinion polls suggested the remain camp has been gaining momentum again.
In forward market, premium for dollars remained under pressure due to sustained receivings from exporters.
Meanwhile, the benchmark BSE Sensex rose by 236.57 points or 0.88 per cent to end at 27,002.22.