Rupee climbs 42 paise against US dollar

Mumbai, April 5 (PTI) The rupee gained 42 paise to close at 81.90 against the US dollar on Wednesday, as heavy buying in domestic equities bolstered investor sentiment.

Besides, foreign capital inflows and a rising risk appetite also supported the domestic unit, forex dealers said.

At the interbank foreign exchange market, the local unit opened strong at 82.08 and touched an intra-day high of 81.90 and a low of 82.20 against the greenback.

It finally settled at 81.90, a rise of 42 paise over its previous close.

In the previous session on Monday, the rupee closed at 82.32 against the dollar.

The forex market was closed on Tuesday on account of Mahavir Jayanti.

“The rupee traded strong…as prices got supported by falling dollar index, which is now near USD 101 along with support from strength in capital markets as FII saw positive buying in Indian markets. The rupee range can be seen between 82-82.25. Participants await crucial RBI policy due on April 6, which can give further directions to the rupee,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.10 per cent to 101.36.

On the domestic equity market front, the 30-share BSE Sensex advanced 582.87 points or 0.99 per cent to end at 59,689.31, while the broader NSE Nifty jumped 159 points or 0.91 per cent to 17,557.05.

Global oil benchmark Brent crude futures declined 0.08 per cent to USD 84.87 per barrel.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they bought shares worth Rs 806.82 crore, according to exchange data.