The rupee strengthened by 41 paise to close at more than three-week high of 73.16 against the dollar on Wednesday as global crude oil prices eased and domestic equity markets staged a smart rebound.
Reversing a four-session slide, the BSE Sensex on Wednesday recaptured the 34,000-mark by jumping 187 points amid easing crude oil prices and a recovery in Rs .
Forex dealers said softening crude oil prices supported the rupee’s upward movement.
On Tuesday, Saudi Arabia pledged to meet any supply shortfalls and replace any looming shortages due to Iranian sanctions, which will start on November 4. Following this, Brent crude prices plunged to below $76 level before recovering to $76.03 per barrel.
Falling crude oil prices eased concerns over forex outflows amd supported selling of the US currency by exporters. The greenback’s weakness against some currencies overseas also helped the recovery in the domestic currency. The domestic unit however pared some gains and settled the day up by 41 paise at 73.16/$.