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At the Interbank Foreign Exchange (Forex) market, the domestic unit was quoted 30 paise higher at 51 a dollar, the highest since February 27.
Dealers said hopes of fresh capital inflows from foreign funds into the domestic stock markets, tracking firm global cues supported the rupee.
Some dollar selling by banks and exporters, and the greenback's weakness against other major currencies also helped the domestic currency strengthen, they added.
On Wednesday, the rupee at 51.30/31 a dollar, a gain of 19 paise against the US currency.
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