The rupee appreciated 26 paise to close at 79.65 (provisional) against the US dollar on Thursday, following a solid trend in domestic equities.
In the interbank forex market, the local unit opened at 79.80 against the dollar, eventually settling at 79.65 (provisional), registering a 26 paise increase from the previous close.
During the session, the local unit witnessed an intra-day high of 79.64 and a low of 79.85 against the US currency.
On Wednesday, the rupee fell 13 paise to close at 79.91 against the US dollar.
The dollar index, which measures the dollar’s strength against a basket of six currencies, rose 0.12 percent to 106.58.
Brent oil futures, the global oil benchmark, rose 1.37 percent to $108.08 a barrel.
“The rupee traded positively after positive capital markets and a negative dollar reaction after the Fed’s 0.75 bps gain with a data-driven further stance from Fed Chair Powell,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
Trivedi went on to say that “higher crude oil prices held back rupee gains. Progress on the route can be seen in the 79.50-79.95 range.”
In the domestic stock market, the BSE Sensex finished 1,041.47 points or 1.87 percent higher at 56,857.79, while the broader NSE Nifty rose 287.80 points or 1.73 percent to 16,929.60.
Foreign institutional investors remained net sellers in the capital market on Wednesday, selling shares worth Rs 436.81 crore, according to stock market data.