The Indian rupee added another 9 paise to mark its highest level in over five weeks at 74.19 against the US dollar on Wednesday, aided by bullish equities and subdued crude oil prices.
Further, gains in Asian peers against the US dollar too bolstered rupee sentiment.
At the interbank forex market, the rupee opened at 74.16 and hit an intra-day high of 74.08 and a low of 74.24. It finally closed at 74.19, higher by 9 paise over its last close its best closing level since June 28.
“The Indian rupee appreciated for the 3rd straight session against the US dollar, aided by inflows related to IPOs and positive regional cues,” said Sriram Iyer, Senior Research Analyst, Reliance Securities.
However, likely intervention from the central bank of India capped further appreciation, Iyer said.
Meanwhile, Asian currencies appreciated against the US dollar on Wednesday, while gains in the local equity markets and subdued crude oil prices also aided sentiments.
The dollar index was flat this Wednesday afternoon trade in Asia as investors awaited US jobs data for a guide on the outlook for interest rates, he added.
Brent crude futures, the global oil benchmark, were almost flat at USD 72.42 per barrel.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.01 per cent to 92.09.
On the domestic equity market front, the BSE Sensex ended 546.41 points or 1.02 per cent higher at 54,369.77, while the broader NSE Nifty advanced 128.05 points or 0.79 per cent to 16,258.80.
Meanwhile, foreign institutional investors were net buyers in the capital market on Tuesday as they purchased shares worth Rs 2,116.60 crore, as per exchange data. ( PTI )
