Rupee vs US dollar: Indian currency gains 6 paise to 73.42

Mumbai: The rupee strengthened by 6 paise to 73.42 against the US dollar in early trade on Wednesday on increased selling of the American currency by exporters and banks. Forex dealers said weakness in the dollar against some currencies overseas and a higher opening of domestic equity markets

gave some support to the rupee.

On Tuesday, the rupee had climbed 35 paise to close at nearly two-week high of 73.48 per dollar amid softening crude oil prices and easing concerns over the trade deficit. Meanwhile, the benchmark BSE Sensex jumped 391.18 points, or 1.03 per cent, to 35,553.66 in the opening trade.

The rupee climbed 35 paise to end at nearly two-week high of 73.48 per dollar Tuesday amid softening crude oil prices and easing concerns over the trade deficit.

Traders said foreign fund inflows and greenback weakening against other currencies were the other factors that provided support to the home unit.

At the Interbank Foreign Exchange (Forex), the rupee opened on a firm note at 73.79 from Monday’s close of 73.83. During the day the domestic currency gained further ground to hit a high of 73.47 against the US dollar, driven by selling of the greenback by exporters.

Watch this Zee Business video here:

The domestic unit settled the day up by 35 paise or 0.47% at 73.48 to the dollar, the highest closing level since October 3. The rupee had lost 26 paise to close at 73.83 Monday.

Forex dealers said bullish trend in the equity market as well as easing crude oil prices supported the rupee’s upward movement.