On Wednesday, the rupee strengthened 65 paise to 72.72 (provisional) against the US dollar due to weakness in the US dollar and increased risk appetite in the global markets.
In the interbank foreign exchange market, the local unit opened at 73.26 against the greenback and saw an intra-day high of 72.71 and a low of 73.26.
It eventually closed at 72.72 against the US currency, registering an increase of 65 paise over its previous closing. The rupee had closed at 73.37 against the US currency on Tuesday.
BKP Paribas Research Analyst, Sharekhan said, “Market perceptions have improved that large-scale stimulus packages from governments, easy monetary policies from central banks and progress in vaccination programs will boost economic growth.”
The dollar index, which estimates the strength of the greenback against a basket of six currencies, fell 0.12% to 90.67.
Meanwhile, global oil benchmark Brent crude futures rose 1.69% to $ 63.76 a barrel.
Mr. Mukharam said, “Besides, the rupee appreciated due to softening in crude oil prices and persistent FIIs. In addition, the macro economic data also supported the rupee. In the next session, the rupee will be in the range of 72.80 to 73.80. Can do business between. “
On the domestic equity market front, the BSE Sensex rose 1,147.76 points or 2.28% to 51,444.65, while the broader NSE Nifty rose 326.50 points or 2.19% to 15,245.60 points.
Foreign institutional investors were net buyers in the capital market as they bought shares worth Rs 2,223.16 crore, as per exchange data on Tuesday.