The rupee appreciated 23 paise to close at 79.72 (provisional) against the US dollar on Thursday amid easing crude oil prices and a firm trend in domestic equities.
At the interbank forex market, the local unit opened at 79.72 against the greenback.
It witnessed an intra-day high of 79.65 and a low of 79.83 during the session.
It finally ended at 79.72, up 23 paise from its previous close of 79.72.
The dollar index, which measures the greenback's strength against a basket of six currencies, fell 0.11 per cent to 109.72.
Brent crude futures, the global oil benchmark, fell 0.60 per cent to USD 87.47 per barrel.
On the domestic equity market front, the BSE Sensex ended 659.31 points or 1.12 per cent higher at 59,688.22, while the broader NSE Nifty gained 174.35 points or 0.99 per cent to 17,798.75.
Foreign institutional investors (FIIs) remained net buyers in the capital markets as they purchased shares worth Rs 758.37 crore on Wednesday, according to provisional data.