The rupee increased by 6 paise to 71.01 upon the US dollar in early trade on Wednesday at the interbank forex market on some selling of the greenback by exporters and banks amid maintained foreign fund inflows.
A positive opening for the stock markets also supported the domestic currency, dealers said. On Tuesday, the rupee closed its gains of previous two sessions and closed 10 paise lower at 71.07 to the U.S. dollar among fears of an escalation in geopolitical strains following Indian fighter jets’ air strike on a Pakistan-based terror camp.
Foreign institutional investors (FIIs) bought shares worth ₹1,674.17 crore on Tuesday, as per provisional data. In global trade, the US dollar fell to a three-week low after Federal Reserve chairman strengthened the US central bank’s recent shift toward a more “patient” approach on policy in the face of the slowing economy.
While, the benchmark BSE Sensex rose 218.81 points, or 0.61%, to 36,192.52 points in early trade.