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The Indian rupee strengthened for a fourth consecutive session on Wednesday, supported by sustained foreign fund inflows, strong domestic equities and a softer US dollar ahead of the US Federal Reserve's policy decision.
The local currency settled at 95.66 per US dollar, up 16 paise from Tuesday's close of 95.82. During the session, the rupee opened at 95.70, touched an intraday high of 95.48 and slipped to a low of 95.80 before ending higher.
The rupee has now gained for four straight trading sessions, recovering after a bout of weakness earlier this month as easing concerns over global risk sentiment and continued foreign portfolio inflows lent support to the domestic currency.
Forex traders said a weaker dollar ahead of the conclusion of the US Federal Reserve's policy meeting also aided the rupee. Market participants are closely watching the central bank's commentary for clues on the future trajectory of US interest rates.
The dollar index, which tracks the US currency against a basket of six major currencies, was marginally lower at 101.22.
Brent crude futures, the global oil benchmark, traded at $87.27 a barrel. Analysts said crude prices rose overnight after renewed tensions in West Asia, though prices remained below recent peaks as markets continued to assess the geopolitical situation.
Domestic equities also provided support to the rupee. The BSE Sensex rallied 888.68 points, or 1.16%, to close at 77,654.60, while the NSE Nifty 50 gained 264.85 points, or 1.10%, to settle at 24,250.20.
Foreign institutional investors were net buyers of Indian equities worth ₹755.33 crore on Tuesday, according to exchange data.
Separately, official data released on Tuesday showed India's industrial production expanded 7.3% in June, accelerating from 5.1% in May, driven by stronger manufacturing activity and robust growth in the electricity and gas sectors.
The local currency settled at 95.66 per US dollar, up 16 paise from Tuesday's close of 95.82. During the session, the rupee opened at 95.70, touched an intraday high of 95.48 and slipped to a low of 95.80 before ending higher.
The rupee has now gained for four straight trading sessions, recovering after a bout of weakness earlier this month as easing concerns over global risk sentiment and continued foreign portfolio inflows lent support to the domestic currency.
Forex traders said a weaker dollar ahead of the conclusion of the US Federal Reserve's policy meeting also aided the rupee. Market participants are closely watching the central bank's commentary for clues on the future trajectory of US interest rates.
The dollar index, which tracks the US currency against a basket of six major currencies, was marginally lower at 101.22.
Brent crude futures, the global oil benchmark, traded at $87.27 a barrel. Analysts said crude prices rose overnight after renewed tensions in West Asia, though prices remained below recent peaks as markets continued to assess the geopolitical situation.
Domestic equities also provided support to the rupee. The BSE Sensex rallied 888.68 points, or 1.16%, to close at 77,654.60, while the NSE Nifty 50 gained 264.85 points, or 1.10%, to settle at 24,250.20.
Foreign institutional investors were net buyers of Indian equities worth ₹755.33 crore on Tuesday, according to exchange data.
Separately, official data released on Tuesday showed India's industrial production expanded 7.3% in June, accelerating from 5.1% in May, driven by stronger manufacturing activity and robust growth in the electricity and gas sectors.
