Snapping a three-day downward move, the rupee on Wednesday ended six paise higher at 61.59 versus the dollar on hopes that weak US jobs data would result in the Fed extending its economic stimulus.
However, the hefty initial gains of the rupee, which had jumped to 61.05 intra-day, were substantially erased on month-end demand for US dollars from private oil firms and some defence-related purchases, amid fall in domestic stocks.
The rupee resumed sharply higher at 61.10 per dollar as against the last closing level of 61.65 per dollar at the Interbank Foreign Exchange (Forex) Market and moved up further to 61.05 per dollar.