Rupee Rises 3ps To 83.60/$

Mumbai: The rupee appreciated 3paise to close at 83.60 against the US dollar on Wednesday, tracking a positive trend in domestic equities and a weak greenback against major currencies overseas. However, net foreign fund outflows capped sharp gains in the local unit, forex traders said. At the interbank foreign exchange, the local unit opened slightly strong at 83.59 against the American currency. During the session, it surged 12paise to touch 83.51. However, the domestic currency gave up most of its gains to settle at 83.60 , 3paise higher than its previous close.

On Tuesday, the rupee fell 9paise to close at 83.63 against the American currency. “This strength is likely supported by a weak dollar index and continued positive sentiment in Indian markets,” Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose marginally by 0.05 per cent to 100.52. On the domestic equity markets front, Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, offloading shares worth Rs 2,784.14 crore, according to exchange data.