The rupee gained 22 paise to close at 74.91 (provisional) against the U.S. dollar on Wednesday as positive domestic equities and a weak American currency in the overseas markets boosted investor sentiment.
At the interbank forex market, the domestic unit opened at 74.96 against the greenback and witnessed an intra-day high of 74.79 and a low of 75.02 during the day's trade. It finally ended at 74.91 a dollar.
On Tuesday, the rupee dropped by 6 paise to 75.13 against the U.S. dollar amid concerns over the fresh impact of the
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The rupee has been under pressure over the last few trading sessions, as the detection of a new coronavirus variant re-ignited growth concerns and hurt risk appetite.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.03% to 95.96.
Brent crude futures, the global oil benchmark, jumped 4.75% to $72.52 per barrel.
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On the domestic equity market front, the BSE Sensex surged 619.92 points or 1.09% to end at 57,684.79, while the broader NSE Nifty jumped 183.70 points or 1.08% to 17,166.90.
Foreign institutional investors were net sellers in the capital market on Tuesday, as they offloaded shares worth ₹5,445.25 crore, according to exchange data.
On the macro-economic front, India's GDP expanded by a better-than-expected 8.4% in the July-September quarter to cross pre-pandemic levels.
The Union government's fiscal deficit was 36.3% of the budget estimates at the end of October 2021, on the back of improvement in revenue collection.