The rupee strengthened by 20 paise to trade at over seven-month high of 60.65 against the US dollar today on heavy capital inflows amid a higher opening in the equity market.

Dealers said increased selling of the American currency by banks and exporters also supported the rupee but dollar's range-bound movements against other currencies overseas, limited the gains. The rupee had appreciated 22 paise to close at an over seven-month high of 60.85 against the US currency in the previous session on heavy capital inflows into equities that surged to a fresh record. Meanwhile, the benchmark BSE Sensex rose 39 points,while the Nifty was up 12 points in trade.

With inputs from PTI