The rupee rose 30 paise to close at 81.63 against the US dollar.
The rupee closed up 30 paise at 81.63 (provisional) against the US dollar on Thursday as a weaker greenback in overseas markets and a rally in domestic equities boosted investor sentiment.
Forex traders said the dollar fell in international trade after weak US data and dovish Fed minutes.
In the interbank foreign exchange market, the local unit opened at 81.72 and touched an intraday high of 81.60 and a low of 81.77 against the greenback. The local unit finally settled at 81.63, registering an increase of 30 paise over its previous close.
On Wednesday, the rupee closed 26 paise lower at 81.93 against the US currency.
“The rupee has been trading in a narrow range and has been less volatile over the past few sessions. The euro and pound are trading higher after the Fed maintained a less dovish stance in its meeting minutes released on Wednesday,” Gaurang said. said Soumya, Forex and Bullion Analyst, Motilal Oswal Financial Services.
Some committee members expressed concern about risks to the financial system if the Fed continues to move at the same aggressive pace, Soumya said. He added that volatility for the dollar could remain low with US markets closed for the Thanksgiving holiday.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.19 percent to 105.87. Global oil benchmark Brent crude futures were down 0.32% at US$85.14 per barrel.
On the domestic equity market front, the 30-share BSE Sensex ended up 762.10 points, or 1.24 percent, at 62,272.68, while the broader NSE Nifty rose 216.85 points, or 1.19 percent, to 18,484.10.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth Rs 789.86 crore, according to exchange data.