The US dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.37% to 96.15.
The rupee on Thursday closed 23 paise higher at 76.09 (provisional) against the US dollar in response to the US Federal Reserve’s announcement to end bond-buying incentives till March.
In the interbank forex market, the local unit opened at 76.31 against the greenback and witnessed an intra-day high of 76.06 during the day’s trade.
On Wednesday, the rupee had closed at a 20-month low of 76.32, down 44 paise against the US currency.
Jatin Trivedi, Senior Research Analyst, said, “Rupee traded positive on US Fed’s statement of tapering, but economic data relevance did not support dollar index. Rupee helped take support near 76.25. Further Going to see the rupee in the range of 75.75-76.25. LKP Securities said.
The US Federal Reserve hinted at several interest rate hikes next year.
Forex traders said appreciation bias in the rupee may ease amid rising concerns over the Omicron version of coronavirus, firming crude oil prices and persistent foreign fund outflows.
Meanwhile, the US dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.37% to 96.15.
Global oil benchmark Brent crude futures rose 1.12% to $74.71 a barrel.
Foreign institutional investors were net sellers in the capital markets on Wednesday as they sold shares worth Rs 3,407.04 crore, according to stock exchange data.
On the domestic equity market front, the BSE Sensex closed 113.11 points or 0.20% higher at 57,901.14, while the broader NSE Nifty ended 27.00 points or 0.16% higher at 17,248.40.
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