The rupee was higher on Thursday, supported by gains in the local share market, but it was off the three-month high hit earlier due to a fall in the euro, a closely tracked indicator of global risk appetite by local currency traders.
The euro dipped versus the dollar on Thursday, paring gains made after better manufacturing data eased worries about global growth, and looked set to stay subdued as investors awaited a debt swap deal between Greece and its private creditors.
The BSE Sensex was up 0.8% but lower than the day's high after the Supreme Court quashed 122 telecoms licences issued in 2008 in a judgement that immediately sent some telecoms stocks down.
The outlook on the currency remains positive as economic momentum in Asia's third-largest economy is expected to stay strong with the RBI slowly returning to monetary easing, traders said.
Foreign funds have bought Indian shares worth $2.18 billion so far this year and invested $3.2 billion in debt, data from the Securities and Exchange Board of India showed.
