Rupee settles 28 paise higher at 74.08 against US dollar

MUMBAI: The rupee pared some of its initial gains and settled 28 paise higher at 74.08 (provisional) against the US dollar on Friday, supported by foreign portfolio flows even as investors continued to wait for the outcome of the US elections.

Traders said positive domestic equities, weak American currency and expectation of Joe Biden's victory in the US presidential election supported the local unit.

At the interbank forex market, the domestic unit opened at 73.99 against the US dollar and touched an intra-day high of 73.87 and a low of 74.28. It finally closed at 74.08 against the greenback, registering a rise of 28 paise over its previous close.

On Thursday, the rupee gained 40 paise to end at 74.36 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.02 per cent down at 92.50.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 508.52 points higher at 41,848.68 and broader NSE Nifty surged 139 points to 12,259.30.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 5,368.31 crore on Thursday, according to provisional exchange data. Brent crude futures, the global oil benchmark, fell 1 per cent to USD 40.52 per barrel.