The local unit traded in a range of 72.99 to 73.29 in the day’s trade.
The rupee on Tuesday closed 29 paise higher at 73.00 (provisional) against the US dollar, marking its fourth straight session of gains following a firming trend in domestic equities and foreign fund inflows.
In the interbank forex market, the local unit opened at 73.26 against the greenback and later gained strength to settle at 73.00, up 29 paise over its previous close of 73.29.
The local unit traded in a range of 72.99 to 73.29 in the day’s trade.
The rupee has gained 124 paise against the dollar in four consecutive sessions till Tuesday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.12 down at 92.54.
“The rupee continues to rise for the fourth day in a row and has become the best-performing currency among Asian currencies following a pick-up in economic activity as well as heavy foreign fund inflows,” said Dilip Parmar, Research Analyst, HDFC Securities.
Markets are setting pricing to keep inflows from foreigners following regulatory curbs by the Chinese government. Parmar said that apart from speculative inflows, FDI inflows are also supporting the local currency.
“The spot USDINR is expected to move towards the June low of 72.32 at the level of 72.74 breaches, while the high at 73.64 becomes strong resistance,” he said.
On the domestic equity market front, the BSE Sensex closed at a lifetime high of 57,552.39, up 662.63 points or 1.16%, while the broader NSE Nifty ended 201.15 points or 1.19% higher at 17,132.20.
Global oil benchmark Brent crude futures fell 0.83% to $72.80 a barrel.
Foreign institutional investors were net buyers in the capital markets on Monday as they bought shares worth ₹1,202.81 crore, data from the exchange showed.
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