On the second day straight, the rupee strengthened by 9 paise against the US dollar and reached to 66.96 at the inter-bank forex market on Thursday.
The rupee derived its strength from strong foreign capital inflows and a higher opening in domestic equities.
Another reason is that Dollar weakness against other currencies in the global market which made the rupee stronger.
The rupee had recovered 13 paise yesterday and closed at a one-month high of 67.05. Meanwhile, the benchmark BSE Sensex rose 50.93 points, or 0.18 per cent, to 27,866.11 in early trade.