Mumbai: The Indian rupee recovered its early losses and ended fractionally up at 47.89/90 against the dollar today in tandem with buoyant local stocks as the US currency weakened against the euro overseas.
In restricted activity, the rupee resumed lower at 48.10/12 a dollar from its last close of 47.90/91 and later moved in a range of 47.88 and 48.14 during the day.
The domestic currency drew support from a late surge in the Indian equity markets, raising hopes of improved capital inflows.
Dealers at the interbank foreign exchange market said banks covered their rupee positions in late afternoon trade as the dollar turned weak against the euro in global markets.
They said the absence of dollar demand and a recovery in local stocks aided rupee sentiment.
The rupee is expected to get a direction after the budget is presented on 6 July.
The Indian benchmark Sensex today bounced back by 152 points or 1.05% while Asian indices mostly closed higher.
Meanwhile, global oil prices surged above $71 a barrel in London trade this afternoon.
Foreign institutional investors (FIIs) have turned net buyers in the last couple of days.