The dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.41% to 101.54.
Traders said strong inflows of foreign funds and crude oil prices below $75 a barrel also supported local unity.
The Rupee consolidated in a tight range and settled for the day up 6 paise at 81.81 (provisional) against the US Dollar on Wednesday, following weakness in the US currency in the overseas market.
Traders said strong inflows of foreign funds and crude oil prices below $75 a barrel also supported local unity.
In the interbank foreign exchange market, the local unit opened at 81.80 against the US currency and finally closed at 81.81 (provisional), recording a gain of 6 paise from its previous close.
During the session, the rupiah touched a high of 81.75 and a low of 81.86 against the dollar.
On Tuesday, the Rupee closed at 81.87 against the US currency.
The dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.41% to 101.54.
Brent futures, the global oil benchmark, fell 2.04% to $73.78 a barrel.
The Indian rupee appreciated on a weak US dollar and a sharp decline in crude oil prices. However, weakness in domestic equities limited strong gains, said Anuj Choudhary – research analyst at Sharekhan by BNP Paribas.
“We expect the rupee to trade with a slight negative risk aversion bias in global markets amid renewed fears over the US banking crisis and concerns over the global economic recovery. .
“However, a weak dollar and a prolonged fall in crude oil prices could prevent a sharp decline in the rupee,” Choudhary said.
Supported FII entries may also support the Rupee at lower levels. Investors may remain cautious ahead of the results of the Federal Open Market Committee (FOMC) meeting and the ISM services index.
“The Fed is expected to raise interest rates by 25 basis points. Traders can also remain cautious ahead of nonfarm payrolls data later this week. We expect the USDINR spot to trade between 81, 30 and 82.30 in the short term,” Choudhary said.
On the domestic stock market front, the 30-stock BSE Sensex fell 161.41 points or 0.26% to end at 61,193.30 points, and the broader NSE Nifty fell 57.80 points or 0. .32% to 18,089.85 points.
Foreign institutional investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth Rs 1,997.35 crore, according to data from the exchange.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
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