Rupee gains 6 paise to settle at near 5-month high against US dollar

Extending its gains for the third straight session, the Indian rupee added another 6 paise to settle at a near five-month high of 72.99 against the US dollar on Thursday, tracking a weaker American currency overseas and sustained foreign fund inflows.

At the interbank forex market, the rupee opened higher at 72.96 and touched the day's high of 72.93 against the greenback before shedding some gains towards the fag-end of the session.

It finally closed higher by 6 paise at 72.99 to the dollar, a level not seen since September 1, 2020.

On Wednesday, the rupee had settled at 73.05 against the American currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.31 per cent to 90.19.

On the domestic equity market front, the BSE Sensex declined 167.36 points or 0.34 per cent to end at 49,624.76; while the NSE Nifty slipped 54.35 points or 0.37 per cent at 14,590.35.

Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 2,289.05 crore on Wednesday, according to exchange data.

Brent crude futures, the global oil benchmark, dropped 0.87 per cent to $55.59 per barrel.

The rupee has gained 29 paise against the dollar over the last three trading sessions.

"Rupee traded in range after a gap-up opening as risky assets keep their outperformance continuing on back of fund inflow globally.

"Some RBI intervention is being witnessed which helped USD-INR to not fall briefly below 72.90. Risky asset performance shall keep rupee buyer interested. Broadly range can continue between 72.60-73.40," said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.