The rupee is still down around 12.7% against the dollar so far this year The rupee appreciated by 33 paise, or 0.5 per cent, to close at 71.97 against the dollar on Thursday.
That marked the highest closing level for the rupee since 71.84 on September 14.
Wednesday's rise also marked the first time the rupee rose to 71 levels on a closing basis in two months.
Crude oil prices' continuous decline along, selling of dollars by exporters and strength in domestic equity markets boosted the rupee, say analysts.
The upmove in the rupee came despite a rising dollar overseas as its appeal as a safe-haven bet improved amid Brexit-related concerns.