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At the Interbank Foreign Exchange (Forex) market, the domestic unit was quoted at 47.74 a dollar, a gain of 15 paise over the previous close of 47.89/91.
Dealers said the US currency's weakness against other Asian currencies and dollar selling by banks, mainly supported the rupee.
Increased capital inflows by funds into the equity markets, which are expected to open higher in tandem with other Asian bourses also supported the rupee, they said.
Asian bourses were quoted as much as 1 per cent higher in the morning trade.
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