The Indian rupee on Thursday recovered its early losses and ended marginally up at 47.02/03 against the US dollar on expectations of more capital inflows into equity and dollar selling by exporters.
Forex dealers said despite a firm dollar overseas, rupee appreciated on hopes of more capital inflows. The Bombay Stock Exchange benchmark Sensex on Thursday advanced further by 151.77 points or 0.95 per cent.
The rupee sentiment was also boosted by Finance Minister Pranab Mukherjee's statement that the government will not put any curbs on foreign inflows, they said.
Initially, the rupee dropped by 11 paise to 47.16 against the dollar owing to some dollar demand from banks amid a firm dollar overseas.
However, the domestic currency moved in a range of 46.99 and 47.25 during the day. It ended at Rs 47.02/03 per dollar, up by three paise over the previous close.
Meanwhile, crude oil prices fell below $80 a barrel in the overseas market.