Continuing its rising streak for the third straight session, the Indian rupee today closed higher by 22 paise at 46.80/81 against the US currency on persistent dollar selling by exporters and banks amid a strong equity market.

Forex dealers said hopes of increased capital inflows into the local equity market mainly boosted the rupee sentiment. The BSE benchmark Sensex today shot up by 94.38 points or 0.59 per cent from its previous close.

In the overseas market, the dollar eased slightly which also led to the rise in rupee. Activity in the market was muted ahead of the US non-farm payrolls data -- the last big event risk of the week after a round of central bank decisions which broadly weighed on the dollar.

Meanwhile, crude oil prices climbed back above USD 80 a barrel in the overseas market.

The local unit resumed higher at 46.85/86 per dollar as against the overnight closing level of 47.02/03 per and hovered in a range of 46.74 per dollar and 46.88 per dollar before finishing at 46.80/81, showing a net gain of 22 paise from its previous close.

The rupee had gained by 60 paise or 1.27 per cent in the last three days.