The rupee had closed at 73.87 against the US dollar on September 22.
The Indian rupee rose 10 paise to 73.77 against the US dollar in early trade on September 23, tracking a weakness in the US currency in the overseas market and a firming trend in domestic equities.
At the interbank foreign exchange, the rupee opened at 73.85 against the dollar, then rose 10 paise to 73.77 over its previous close.
On September 22, the rupee had closed at 73.87 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.10% to 93.36.
Reliance Securities Senior Research Analyst Sriram Iyer said forex traders said a slightly sharper bias from the US Federal Reserve supports the dollar.
The US Federal Reserve said it will begin reducing its monthly bond purchases as soon as November and indicated interest rate hikes could happen faster than expected.
Mr Iyer further said the sector’s risk-taking ability may improve as concerns over the China Evergrande default eased as its chairman said the company would consider it “highest” to help wealth investors capitalize on its products. Will give priority
Meanwhile, foreign institutional investors were net sellers in the capital market on September 22 as they sold shares worth 1,943.26 crore, according to exchange data.
On the domestic equity market front, the BSE Sensex was trading 567.05 points or 0.96% higher at 59,494.38, while the broader NSE Nifty rose 170.70 points or 0.97% to 17,717.35.
Global oil benchmark Brent crude futures rose 0.26% to $76.39 a barrel.
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