Mumbai, India (BBN)-Indian rupee strengthened to 67.76 on increased selling of US dollar by exporters and banks and a strong domestic stock market.
Forex dealers said the dollar’s weakness against other currencies overseas gave the rupee some relief, reports The Hindu Business Line.
Further, a firm domestic equity market gave the uptrend some momentum, they added.
The domestic unit opened higher by 15 paisa at 67.90 at the Interbank Foreign Exchange market Thursday.
It hovered in a range of 67.95 and 67.76, before quoting at 67.76, up 29 paisa at 1.55pm local time.
On Wednesday, the domestic unit had ended higher by 28 paisa at 68.05 following a fresh bout of dollar selling.
Meanwhile, the 30-share BSE index Sensex was trading higher by 218.58 points or 0.82 per cent at 26,851.71.
The dollar stepped further away from a 14-year peak against a basket of major currencies on Thursday as market players were spooked by sharp falls in the dollar against the Chinese yuan.
The yuan rose sharply for two days in a row to hit near two-month highs, wrong-footing speculators that had bet on the yuan weakening further due to capital outflows from China.
BBN/SK/AD