Dollar selling by exporters and a weak US currency overseas too aided the rupee upmove.
At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced higher at 60.15 a dollar from last close of 60.24, but fell back to a low of 60.1975.
Later, it bounced back and touched a high of 60.05 before concluding at 60.09, up by 15 paise or 0.25 per cent. The 15-paise rise today is the rupee's best daily gain since July 11 when it improved by 26 paise. The closing value of 60.09 is its strongest level since 60.07 on July 14.
FIIs infused Rs 412.03 crore yesterday, as per provisional data with stock exchanges.
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The dollar index was down 0.05 per cent against a basket of six major global currencies.
Pramit Brahmbhatt, Veracity Group CEO, said: "Rupee continued to trade strong and appreciated by almost a quarter per cent. Local equities continued their bull run, which helped rupee trade strong against the dollar.
"However, importer month-end dollar demand restricted the rupee appreciation. The trading range for the spot rupee is expected to be within 59.70 to 60.60.