Rupee settles 17 paise higher at 94.58 against US dollar
The local currency remained firm for a second session as crude oil prices fell and capital inflows increased.
The rupee rose by 17 paise to settle at a provisional 94.58 against the US dollar on Wednesday, according to reports by The Economic Times, The Hindu and Deccan Herald. This marked the second consecutive session of gains for the domestic currency.
The currency's strength was aided by falling crude oil prices, a weaker American currency and incoming capital from international investors. Forex traders also noted that positive performance in domestic equity markets and the outcome of US midterm elections helped improve global sentiment.
In the interbank foreign exchange market, the rupee started at 94.61, reached a high of 94.50 and a low of 94.87. This follows Tuesday's close of 94.75, when the currency gained 9 paise.
Vinod Nair, Head of Research at Geojit Investments Limited, said the US midterm results improved global sentiment by raising expectations of more measured trade and tariff policies, which could support Foreign Institutional Investor (FII) flows into emerging markets.
The dollar index, which measures the greenback against six currencies, fell 0.53 per cent to 101.18. Meanwhile, Brent crude futures declined 0.73 per cent to USD 102.84 per barrel.
On the domestic stock market, the Sensex rose 383.55 points or 0.50 per cent to 77,301.40, while the Nifty climbed 149.75 points or 0.63 per cent to 23,960.60. Exchange data showed FIIs were net buyers for the third day on Tuesday, purchasing equities worth Rs 6,836.81 crore.