Mumbai, Jul 18 (PTI) The rupee firmed up by 12 paise to 68.33 against the US dollar on increased selling of the American currency by exporters and banks.

Forex dealers said besides sustained selling of the greenback, a higher opening of the domestic equity markets boosted the rupee at the interbank forex market.

However, the dollar's strength against some currencies overseas capped the gains of the domestic unit.

The dollar firmed after Federal Reserve Chairman Jerome Powell's US economic outlook reinforced views that the central bank is on track to hike interest rates gradually.

Yesterday, the local currency bounced back to settle at a fresh two-week high of 68.45 against the US currency, gaining 12 paise as crude oil prices beat a hasty retreat, easing inflation and trade deficit worries.

Meanwhile, the benchmark BSE Sensex was surged 227.91 points, or 0.62 per cent, to hit an all-time high of 36,747.87 in opening trade today.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)