Tracking a smart rebound in local equities, the rupee on Tuesday recovered by 8 paise to close at 44.49/50 against the US currency.
Weak dollar overseas coupled with fresh dollar selling by exporters also helped the rupee cut short two-session losing string, dealers said.
In a thin trade at the Interbank Foreign Exchange (Forex) market, the local currency opened slightly better at 44.54/55 a dollar from yesterday's close of 44.57/58.
Later, it was trapped in a tight range between 44.48 and 44.5950 before settling the day at 44.49/50.
"Rupee is unlikely to gain big as underlying mood was guarded before outcome of emergency euro zone summit scheduled for Thursday on Greece bailout," Alpari Financial Services (India) CEO Pramit Brahmbhatt said.
USD-INR futures moved in thin range today. Rupee opened better but later turned just negative following weakness in the local equities in late morning session. USD-INR gained in afternoon trade as the euro strengthened resulting in a fall in dollar index, he added.
The BSE benchmark Sensex bounced back by 146.83 points or 0.79 per cent after last two-sessions of sell-off.
