The local unit advanced by 3 paise to finish at 95.25 per greenback. Its firmer finish came with gains in domestic equities and softer crude oil prices, trader sentiment showed.
Traders remained cautious, with a strong dollar in place and expectations of a possible December Fed rate hike. The small rise offered little immediate respite amid the prevailing market tone.
The close marked a modest move for the rupee, as global rate expectations and the dollar strength kept attention on the Federal Reserve. The greenback strength remained a key risk.