Forex traders attributed a steady inflow of foreign funds to support the local currency
The Indian rupee rose 43 paise on Wednesday to close at 81.43 against the US dollar due to broad weakness in the dollar and improving global risk sentiments.
The Indian rupee opened at 81.36 on Wednesday and traded between 81.21 and 81.62 during the day. It had closed at 81.91 against the greenback on Monday.
The forex market was closed on Tuesday on account of Gurunanak Jayanti.
Forex traders attributed a steady inflow of foreign funds to support the local currency.
They said that FPI inflows are returning to domestic equities, aiding the local currency.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets as they purchased shares worth Rs 1,948.51 crore on Monday, according to exchange data.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.01 per cent to 109.64.