For the second straight session, the Rupee on Tuesday inched up 6 paise to 69.80 against the U.S. dollar on fresh foreign funds inflows amid exit poll predictions, most of which forecast another term for Prime Minister Narendra Modi.
Besides, a positive start of the equity markets also supported the Rupee, forex dealers said.
However, a strong U.S. dollar against major global currencies and rising crude prices capped gains of the domestic unit, they added.
At the Interbank Foreign Exchange market, the domestic unit opened slightly down at 69.75 against the dollar, then it rose to quote at 69.80, up 6 paise over its previous close in early trade.
The Rupee had appreciated 49 paise to 69.74 against the U.S. dollar in the previous session. The BSE Sensex was trading 205.24 points, or 0.52%, higher at 39,557.91 in early trade. In similar movement, the broader NSE Nifty rose 48.90 points, or 0.41%, to 11,877.15.
Foreign institutional investors (FIIs) emerged as net buyers in the capital markets, putting in ₹1,734.45 crore on Monday, provisional exchange data showed.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.04% to 97.97.
Meanwhile, brent crude, the global benchmark, surged 0.31% to trade at 72.19 per barrel.
