FII inflows make rupee stronger

Mumbai: The rupee appreciated by 10 paise to close at 74.01 against the US dollar on Tuesday on sustained foreign fund inflows and positive development over coronavirus vaccine.

Traders said investor risk sentiment improved amid growing hopes of an early rollout and efficacy of Covid-19 vaccines. Besides, strong domestic equities, sustained foreign fund inflows and weak American currency also supported the local unit. At the interbank forex market, the domestic unit opened at 74.10 against the US dollar and then touched a high of 73.88 and a low of 74.12 in day trade.

The local unit finally ended at 74.01 against the greenback, registering a rise of 10 paise over its previous close. On Monday, the rupee had appreciated 5 paise to settle at more than two-week high of 74.11 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.32 per cent to 92.20.