The rupee on Wednesday closed 14 paise higher at 74.44 (provisional) against the US dollar, tracking positive regional peers, even as the domestic equity market closed with significant losses.
In the interbank foreign exchange market, the rupee opened lower by 12 paise at 74.70 per dollar from the previous close. During the day, it narrowed the losses and saw an intra-day high of 74.32.
The domestic unit finally closed at 74.44 (provisional) against the US currency, up 14 paise over the previous close.
The rupee on Tuesday lost 33 paise to close at a two-week low of 74.58 against the US dollar.
“Indian rupee gained the most in a week after strong regional currencies. Domestic bond markets witnessed a recovery from suspected central bank intervention, which helped the rupee’s recovery,” said Dilip Parmar, Research Analyst, HDFC Securities.
Besides, relentless selling of dollars from corporates ended speculation, Mr. Parmar said.
“Spot USD/INR is expected to consolidate within the 74.25 to 74.80 band in the coming days,” he added.
Meanwhile, the US dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.11% to 95.62.
Global oil benchmark Brent crude futures jumped 0.94% to $88.33 a barrel.
Foreign institutional investors remained net sellers in the capital markets on Tuesday as they sold shares worth Rs 1,254.95 crore, according to stock exchange data.
On the domestic equity market front, the BSE Sensex ended 656.04 points or 1.08% lower at 60,098.82, while the broader NSE Nifty ended 174.65 points or 0.96% lower at 17,938.40.
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