The Rs rose by 21 paise to end at 71.46 against the US dollar on Tuesday on increased selling of the greenback by exporters amid softening crude oil prices, and persistent foreign fund inflows.
This is the sixth straight session of gains for the domestic unit as the US dollar weakened against some currencies overseas. In the last six trading sessions, the rupee has gained 143 paise.
“Domestic currency strengthened for a sixth day after RBI’s OMOs supported rupee’s rise that has been set off by declining oil prices and continued capital inflows. The appreciation has happened even as Dollar fell to a two week low following Fed’s cautious comments over a potential global slow down,” Anand James, Chief Market Strategist at Geojit Financial Services, said.
The Reserve Bank Monday said it will inject Rs 8,000 crore into the system through purchase of government securities on November 22.
At the Interbank Foreign Exchange (forex), the rupee opened on a firm note at 71.39. It gained further ground to hit a high of 71.27, following dollar selling by exporters.
