Snapping its two-day losing streak, the rupee on Monday bounced back by 9 paise to 66.67 against the US dollar on fag-end selling of the American currency by banks and exporters.
The rupee opened lower at 66.78 per dollar as against the last weekend's level of 66.76 at the Interbank Foreign Exchange market and dropped further to 66.86 on month-end dollar demand from importers mainly oil refiners.
However, it recovered afterwards to 66.62 on fag-end selling of dollars by exporters before settling at 66.67, showing a gain of nine paise or 0.13 per cent.
It had dropped by 44 paise or 0.66 per cent in the previous two trading days.
The local currency moved in a range of 66.62 and 66.86 per dollar during the day.
The dollar index was higher by 0.16 per cent against a basket of six currencies in the late afternoon trade.
The dollar was mainly higher in the late afternoon trade today, as investors prepared for potentially market-moving events later this week, including the closely watched US nonfarm payrolls report and the European Central Bank decision.
Meanwhile, the benchmark BSE Sensex ended marginally higher by 17.47 points or 0.07 per cent.
In forward market today, premium for dollar dropped further on persistent receivings from exporters.
The benchmark six-month premium payable in April fell to 172.5-174.5 paise from the last weekend's level of 177-179 paise and far forward October 2016 contract also dropped to
377-379 paise from 385-387 paise.
The RBI fixed the reference rate for the dollar at 66.8148 and for the euro at 70.6834.
The rupee recovered against the pound sterling to end at 100.07 from 100.63 on last Friday also moved up against the euro to settle at 70.48 as against 70.71.
The domestic currency firmed up against the Japanese currency to close at 54.16 per 100 yen from 54.45.