Indian Rupee rallies 47 paise to close at 74.88 against US dollar

The rupee surged by 47 paise to close at 74.88 (provisional) against the US dollar on Wednesday on easing global crude oil prices.

A surging American currency in the overseas market and losses in the domestic equity markets put some pressure on the rupee, forex dealers said.

At the interbank forex market, the local unit opened strong at 75.10 against the greenback and later gained strength to settle at 74.88, higher by 47 paise over its previous close of 75.35. The local unit moved in a range of 74.83 to 75.13 in the day trade.

The currency market was closed on Tuesday for the Id-E-Milad' holiday.

Forex traders said the rupee's rise was mainly supported by softening crude oil prices in international markets.

Brent crude futures, the global oil benchmark, fell 0.83 per cent to USD 84.37 per barrel.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, surged 0.12 per cent to 93.84.

On the domestic equity market front, the BSE Sensex ended 456.09 points or 0.74 per cent lower at 61,259.96, while the broader NSE Nifty declined 152.15 points or 0.83 per cent to 18,266.60.

Foreign institutional investors were net sellers in the capital market on Tuesday, as they offloaded shares worth Rs 505.79 crore, according to exchange data.