The rupee edged higher by 62 paise at 80.78 (provisional) against the US dollar on November 11, as a fall in the dollar index coupled with softening US/CPI data boosted investor sentiment.
Forex traders said positive domestic equities and sustained foreign fund inflows also supported the local unit.
At the interbank forex market, the local unit opened at 80.76 and touched an intra-day high of 80.58 and a low of 80.99 against the greenback.
The local unit finally closed at 80.78, registering an increase of 62 paise over the previous close of 81.40.
Anuj Choudhary, Research Analyst, BNP Paribas at Sharekhan said, “Weak US dollar and positive domestic markets led to appreciation of the Indian rupee. Continued FII inflows also supported the rupee.”
However, the rise in crude oil prices restricted the sharp gains.
Chowdhary said US inflation and core inflation eased to 7.7 per cent and 6.3 per cent in October, from 8.2 per cent and 6.6 per cent in September, respectively.
“We expect the rupee to trade with a positive bias due to the risk appetite in global markets and weakness in the greenback,” Chowdhury said.
Traders are expected to remain cautious ahead of industrial production data from India and consumer sentiment data from the US on Friday, he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.82% to 107.31.
Global oil benchmark Brent crude futures rose 2.56% to $96.07 a barrel.
On the domestic equity market front, the 30-share BSE Sensex closed 1,181.34 points or 1.95% higher at 61,795.04, while the broader NSE Nifty ended 321.50 points or 1.78% higher at 18,349.70.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Thursday as they bought shares worth 36.06 crore, according to exchange data.