The rupee appreciated by a further 73 paise to close at an almost seven-week high of 61.73 against the dollar on Thursday as the US currency weakened globally following the budget impasse in Washington and fears of the Fed tapering its stimulus programme receded.

Dollar sales by exporters and firm local equities also supported the local currency.

The rupee opened at 62.15 a dollar from the previous close of 62.46 at the interbank foreign exchange market and touched a low of 62.22.

It bounced back to a high of 61.65 before settling at 61.73, a rise of 73 paise or 1.17 per cent.

The rupee was at the highest level since 16th August, when it closed at 61.65 against the dollar.