The rupee rose to near three-week high as dealers cited corporate inflow related selling. Pair was at 63.35/36 after dropping to 63.28, its highest since August 23.
“The way the rupee is strengthening by Friday it may touch Rs 63 per dollar,” said S Srinivasaraghavan, head of treasury, Dhanlaxmi Bank.
Dealer say convincing break of 63.30 means 63 will be next support. Yesterday, the rupee closed at Rs 63.84 against the dollar, up 140 paise, biggest rise in two weeks as fears of US military strike on Syria eased amid lower global oil prices.
Currency dealers are expecting state-run banks to intervene later during the day on behalf of the central bank which will help the rupee further.