Rupee settles 7 paise higher at 75.65 against US dollar

The rupee erased its initial losses and settled 7 paise higher at 75.65 (provisional) against the US dollar on Thursday tracking positive domestic equities and foreign fund inflows.

Forex traders said, the rupee traded in a narrow range as gains in domestic equities, easing crude oil prices and foreign fund inflows supported the market, while strong US dollar and rising coronavirus cases weighed on investor sentiments.

The rupee opened at 75.76 against the US dollar, but gathered strength and closed at 75.65, higher by 7 paise over its previous close.

It had finished at 75.72 against the greenback on Wednesday.

During the four-hour trading session, the domestic unit witnessed an intra-day high of 75.57 and a low of 75.76.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.12 per cent to 97.26.

The 30-share BSE benchmark Sensex was trading 116.84 points higher at 34,985.82 and the broader NSE Nifty rose 35 points to 10,340.30.

Foreign institutional investors were net buyers in the capital market as they bought shares worth Rs 1,766.90 crore on Wednesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, fell 0.30 per cent to USD 40.19 per barrel.