The rupee strengthened by 3 paise and settled for the day at 73.57 against the U.S. dollar on Wednesday, supported by foreign fund inflows and heavy buying in domestic equities.
Traders said weakening of the American currency in the overseas market also supported the local unit.
At the interbank forex market, the domestic unit opened at 73.58 against the U.S. dollar and witnessed an intra-day high of 73.49 and a low of 73.61.
The local unit finally closed at 73.57 against the American currency, registering a rise of 3 paise over its previous close.
On Tuesday, the rupee surged by 30 paise to settle at a one-and-a-half month high of 73.60 against the U.S. dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.24% down at 90.74.
On the domestic equity market front, the BSE Sensex ended 494.99 points or 1.09% higher at 46,103.50, while the broader NSE Nifty jumped 136.15 points or 1.02% to 13,529.10.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth ₹2,909.60 crore on Tuesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 1.06% to $49.36 per barrel.