The rupee ended 4 paise higher at 85.69 (provisional) against the US dollar on Thursday, buoyed by optimism surrounding a potential US-India trade agreement, even as domestic equity markets closed in the red.

Forex traders noted that the Indian currency remained firm throughout the session on expectations of a breakthrough in trade talks between the two nations.

At the interbank foreign exchange, the rupee opened strong at 85.62 and moved in a narrow range of 85.53 to 85.69 before settling at 85.69, up 4 paise from its previous close.