The weakness in the dollar has buoyed the yen, along with expectations the Bank of Japan may shift away from its ultra-loose monetary policy next year.
The USD-INR pair will take cues from the equity market and is expected to trade between 66.50-66.65/USD today, says NS Venkatesh of IDBI Bank.
Indranil Sengupta, India Chief Economist, Bank of America-Merrill Lynch, says the rupee could appreciate to 65 levels versus the dollar by March 2016.