The rupee today gained 21 paise at 45.40 against the dollar in late morning trade on persistent selling of dollars by banks due to the American currency's weakness in the global market and on hopes of more capital inflow into equity markets.
In fairly active trade at the Interbank Foreign Exchange (Forex) market, the local unit opened higher at 45.45/46 per dollar, against yesterday's closing level of 45.61/62. It then moved up further to quote at 45.44/45 per dollar at 1030 hours.
Rupee was later trading in the range of 45.50-45.40.
Forex dealers mainly attributed the rise in the rupee value to recovery in Indian equities.
The Bombay Stock Exchange benchmark Sensex today firmed up by over 100 points from yesterday's close.
In New York, the dollar remained low against most of its big rivals.