Rupee recoups day's losses, ends 13 paise higher against USD

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Mumbai, Oct 27 (PTI) The rupee staged a rebound from the day's lowest level to settle 13 paise higher at 73.71 against the US dollar on Tuesday, buoyed by upbeat domestic equities and greenback selling by exporters.

At the interbank forex market, the domestic unit opened on a weak note at 73.94 against the greenback, but soon staged a smart recovery.

During the session, the domestic unit witnessed an intra-day high of 73.71 and a low of 73.94 against the greenback.

It finally closed at 73.71, registering a gain of 13 paise over its previous close of 73.84 against the US currency.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.07 per cent to 93.11.

On the equity market front, the BSE Sensex ended 376.60 points or 0.94 per cent higher at 40,522.10; and the NSE Nifty was 121.65 points or 1.03 per cent up at 11,889.40.

'The Indian rupee appreciated against the US dollar on Tuesday supported by strong local shares and persistent greenback sales by exporters. Hopes of higher foreign inflows also aided the local unit,' said Sriram Iyer, Senior Research Analyst at Reliance Securities. Moreover, Asian currencies were broadly stronger against the US Dollar and lent support to the local unit, Iyer added.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 3,514.89 crore on a net basis on Tuesday, according to exchange data.

Brent crude futures, the global oil benchmark, increased 0.52 per cent to USD 40.67 per barrel. PTI DRR MKJ