The rupee touched a high of 81.68 and a low of 82.01 against the dollar during the day. (Representational Image)
On Tuesday, the rupee had closed at 81.95 against the American currency.
The rupee on Wednesday strengthened by 21 paise to close at 81.74 (provisional) against the US dollar tracking weakness in the American currency overseas.
Forex traders said a positive trend in domestic equities also supported the local unit.
At the interbank forex market, the local unit opened at 82 against the American currency and finally closed at 81.74 (provisional), registering a gain of 21 paise over its previous close.
The rupee touched a high of 81.68 and a low of 82.01 against the dollar during the day.
On Tuesday, the rupee had closed at 81.95 against the American currency.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.43 per cent to 101.42.
Global oil benchmark Brent crude futures rose 0.12 per cent to $80.87 a barrel.
Rupee appreciated on positive domestic equities and weak US dollar. However, correction in crude oil prices and FII outflows limited the sharp gains, said Anuj Chowdhary, research analyst at Sharekhan by BNP Paribas.
The US dollar declined on rising concerns over recession amid disappointing economic data from the US and renewed banking concerns.
“We expect the rupee to appreciate on weakness in the US dollar as banking concerns raise hopes that the Fed may be dovish in its upcoming Federal Open Market Committee (FOMC) meeting.
“Worries over an economic slowdown in the US could also put pressure on the greenback. However, selling pressure from foreign investors may limit the upside. We expect USD/INR spot to trade in the range of 81.20 to 82.20 in the near term.”
On the domestic equity market front, the 30-share BSE Sensex advanced 169.87 points or 0.28 per cent to close at 60,300.58, and the broader NSE Nifty advanced 44.35 points or 0.25 per cent to 17,813.60.
Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday, selling shares worth Rs 407.35 crore, according to exchange data.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
