₹ scales 2-week high of 64.89, up 22 paise vs $

Mumbai: The rupee on Tuesday rebounded by 22 paise to close at a two-week high of 64.89 against the US dollar cashing in on positive sentiments post Moody's upgrade of India's credit rating.

This is the highest closing for the domestic currency since November 6.

Heavy selling in the greenback by exporters and banks as well as weakness in the dollar against other currencies overseas largely supported the rupee recovery. The local currency also benefited from a strong rally in local equities.

Currency traders and exporters rushed to sell their receivables expecting a surge in dollar inflows from global investors in the face of Moody's decision to upgrade India s sovereign rating after a gap of 14 years. The sovereign rating upgrade comes close on the heels of a sharp improvement in country's ranking in the World Bank's ease of doing business survey.

Brent crude, the international benchmark, is trading a tad higher at $62.36 a barrel in early Asian trade. Earlier at the Interbank Foreign Exchange (forex) market, the rupee opened higher at 65.08 against Monday's finish of 65.11 on bouts of dollar selling.