ICICIdirect expects the US dollar to meet supply pressure at higher levels. ''Utilise upsides in the pair to go short on the USDINR pair. March futures in the range of 66.05-66.10 with target 65.85-65.75.''

The rupee marked its biggest single-day gain in almost 18 months against the dollar, amid hopes of reforms on the back of a favourable and decisive political mandate in key states. Also, dollar selling by exporters during the end of session further strengthened the rupee.

The US dollar gained against major currencies ahead of US FOMC interest rate announcement today. Market participants expect signals for four rate hikes in 2017 on account of the recent uptick seen in employment data and relative stable global financial markets.

In the currency futures market, the most traded dollar-rupee March contract on the NSE ended at 65.96. The March contract open interest rose 0.70 from the previous day. April contract open interest rose 9.43% from the previous day.

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