The rupee appreciated by 36 paise to close at 79.17 (provisional) against the US dollar on Tuesday, tracking the dollar’s decline versus its major peers and foreign fund inflows.
At the interbank forex market, the local unit opened at 79.30 against the greenback. It witnessed an intra-day high of 79.03 and a low of 79.33 during the session.
It finally ended at 79.17, up 36 paise from its previous close of 79.53.
The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.40 per cent to 107.89.
Brent crude futures, the global oil benchmark, advanced 0.96 per cent to USD 94.87 per barrel.
“The Indian rupee registered the biggest one-day gains after July 27, amid long unwinding in the dollar and risk-on sentiments. The dollar inflows from foreign institutions and corporates also supported the rupee,” said Dilip Parmar, Research Analyst, HDFC Securities.
The dollar gauge fell for the third consecutive day, the longest losing streak in a month, in the run-up to the CPI data.
The market participants’ pricing in the US consumer price data due later Tuesday, will show that inflation is near peaking, challenging the dollar-dominance narrative, Parmar added.
On the domestic equity market front, the BSE Sensex ended 455.95 points or 0.76 per cent higher at 60,571.08, while the broader NSE Nifty gained 133.70 points or 0.75 per cent to 18,070.05.