The Indian rupee on Thursday appreciated by 48 paise to close at 71.21 against the US dollar as investors cheered easing tensions between the US and Iran.
At the foreign bank exchange, the domestic unit opened strong at 71.44 per dollar as against the previous day's close of 71.70. During the day, it traded in the range of 71.52 and 71.17 to the US currency.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.12 per cent to 97.41.
The 10-year government bond yield was at 6.53 per cent.
"Rupee traded in the range of 71.52-71.17 after a strong gap up opening on the back of positive cues from the US and Iran as both hinted at want to be away from war with each other.
"Overnight strong fall in crude prices gave rupee the strength and during the day it kept taking support near 71.60. The levels of 71.65-71.85 shall keep acting as a crucial barrier for USD/INR pair whereas 71.45-71.25 as supports in coming sessions," said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.