Rupee settles 12 paise higher at 74.78 against US dollar

Mumbai: The rupee appreciated 12 paise to close at 74.78 (provisional) against the US dollar on Tuesday tracking weakness in the greenback and gains in the domestic equity market.

At the interbank forex market, the local unit opened at 74.83 against the US dollar, then gained further ground and finally settled at 74.78, up 12 paise over its previous close of 74.90 against the American currency.

During the session, the domestic unit witnessed an intra-day high of 74.77 and a low of 74.86 against the greenback.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.13 per cent lower at 93.46.

Forex traders said gains in the domestic currency were supported by foreign fund inflows into domestic equity and debt markets.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 302.88 crore on Monday, according to provisional exchange data.

Market participants will track Index of Industrial Production (IIP) numbers scheduled to be released later in the day for further cues, they said.

Meanwhile, the 30-share BSE benchmark Sensex was trading 307.12 points higher at 38,489.20, while the broader NSE Nifty was trading with gains of 79.20 points at 11,349.35.

Brent crude futures, the global oil benchmark, rose 0.47 per cent to USD 45.20 per barrel.

(PTI)