Rupee rises by 10 paise to close at 77.24 against U.S. dollar

On Tuesday, the rupee had settled at 77.34 against the American currency.

The dollar index traded below the 20-year high level of 104.49 that it breached early this week. File | Photo Credit: S.R. Raghunathan

The rupee appreciated further by 10 paise to settle at 77.24 (provisional) against the U.S. dollar on Wednesday as the American currency retreated from its 20-year high levels.

At the interbank forex market, the domestic unit opened at 77.24 against the U.S. dollar. It moved in a range of 77.17 to 77.31 during the day trade.

The rupee finally closed at 77.24, registering a rise of 10 paise over its previous close. On Tuesday, the rupee had settled at 77.34 against the American currency.

"Rupee consolidated in a narrow range after falling to fresh all-time lows earlier this week. On the domestic front, market participants remained cautious ahead of the inflation number that will be released on Thursday.

"Expectation is that the number could come above the 7% mark. From the U.S., CPI number will be released and is also expected to remain elevated," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

The dollar index traded below the 20-year high level of 104.49 that it breached early this week ahead of the release of inflation data in the U.S. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.39% lower at 103.51.

On the domestic equity market front, the 30-share BSE Sensex ended 276.46 points or 0.51% lower at 54,088.39, while the broader NSE Nifty fell 72.95 points or 0.45% to 16,167.10.

Brent crude futures, the global oil benchmark, spurted by 3.26% to $105.80 per barrel.

Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth ₹3,960.59 crore, as per stock exchange data.