Rupee recovers 21 paise against US dollar

The Indian rupee Tuesday recuperated by 21 paise to 69.44 to the US dollar in line with strong Asian currencies and rally in domestic equities.

The Indian unit opened strong at 69.49 and rose to the day's high of 69.34 at the interbank forex market. During the day, the local unit touched an intra-day low of 69.65 against the US dollar.

The domestic currency finally settled at 69.44, higher by 21 paise from the previous close.

The rupee Monday had settled at 69.65 to the US dollar.

Forex dealers said heavy buying in domestic equities propped up the rupee.

"India's rupee appreciates most in more than a week as rebound in Asian currencies, higher equity markets and stable oil prices supported sentiments," said V K Sharma, Head-PCG & Capital Market Strategy, HDFC securities.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.02 per cent to 96.78.

Brent crude futures, the global oil benchmark, rose 0.06 per cent to USD 62.33 per barrel.

Meanwhile, the 10-year government bond yield was at 7.04 per cent on Tuesday.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 95.79 crore Tuesday, provisional data showed.

The BSE benchmark Sensex Tuesday settled 165.94 points, or 0.42 per cent, higher at 39,950.46. Similarly, the broader NSE Nifty rose 42.90 points, or 0.36 per cent, to settle at 11,965.60.

Meanwhile, Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.4598 and for rupee/euro at 78.5544. The reference rate for rupee/British pound was fixed at 88.2658 and for rupee/100 Japanese yen at 63.94.