The weakness in dollar against some currencies overseas after US Federal Reserve chairman Jerome Powell said that the central bank would remain alert to risks to financial stability in the wake of recent market rout also supported the rupee's upmove.
Besides, industrial output grew 7.1 per cent in December and selling of the American currency by exporters supported the rupee, forex dealers said.
Forex market was closed yesterday for a public holiday.
The benchmark BSE Sensex rose 172.96 points, or 0.50 per cent, to trade at 34,473.43, while the NSE Nifty climbed 41.50 points, or 0.39 per cent, to 10,581.25 today.
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