The rupee gained for the second straight day and closed 12 paise higher at 73.05 (provisional) against the US dollar on Wednesday, supported by a rally in domestic equities and a weak American currency.
At the interbank forex market, the rupee opened at 73.11, and hit an intraday high of 73.05 and a low of 73.14.
It finally finished at 73.05, higher by 12 paise over its last close.
On Tuesday, the rupee had settled at 73.17 against the US currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.07 per cent to 90.43.
On the domestic equity market front, the BSE Sensex ended 393.83 points or 0.80 per cent higher at 49,792.12, while the broader NSE Nifty advanced 123.55 points or 0.85 per cent to 14,644.70.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 257.55 crore on Tuesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 0.70 per cent to $56.29 per barrel.
The rupee is likely to strengthen 1.3 per cent and average 73.5 against the US dollar in the financial year 2022-23 compared with an average level of 74.4 in the financial year 2021-22. The domestic currency may strengthen marginally against the US dollar next year.