Erasing early losses, rupee on Wednesday ended 7 paise higher at 58.70 -- its first gain in three days -- on recovery in local stocks and fresh dollar selling by exporters ahead of the outcome of US Fed policy meet.
However, FII outflows of Rs545 crore capped the gains in the rupee, which had slumped by 126 paise in past two days.
At Forex market, the domestic unit commenced better at 58.74 a dollar from previous close of 58.77, which is its all-time low on a closing basis.