Mumbai: The rupee appreciated by 23 paise to 42.23/24 against dollar in late morning trade on heavy dollar selling by exporters.
The domestic currency witnessed volatile trade on 2 June after resuming stronger at 42.12/13 a dollar from its previous close of 42.46/47 a dollar.
Rupee was quoted at 42.23/24 a dollar at around 1045 hours after banks bought dollar at lower levels.
“The government’s decision to relax norms for foreign currency loans through the external commercial borrowing (ECB) helped rupee bounce back with a vengeance in early trade,” dealers added.
“The Reserve Bank’s decision to open a special window for oil companies to buy foreign exchange without disturbing the market dynamics in the rupee-dollar exchange rate also reduced dollar demand,” a dealer with a bank said.