Mumbai: The rupee pared early gains but managed to end 5 paise higher at 70.39 against the US dollar Wednesday on increased selling of the greenback by exporters amid benign crude oil prices and smart gains in domestic equities.
This is the third straight session of gains for the domestic unit, during which it has rallied by a hefty 151 paise. Traders said sustained selling of the American currency by exporters and banks ahead of the US Fed policy decision propped up the rupee, while sliding oil prices eased current account deficit concerns.
At the Interbank Foreign Exchange (forex), the rupee opened on a firm note at 70.05. It gained further to hit a high of 69.86 following dollar selling by exporters, before finally closing at 70.39, up 5 paise.
The rupee Tuesday had rallied by a whopping 112 paise, its best single-day gains in over five years, to settle at 70.44 against the US dollar.
Forex traders said investor sentiment was supported by sharp fall in bond yields and continued infusion of liquidity by the RBI by way of open market operation. (PTI)
