Rising for the fifth straight session, the rupee appreciated by 11 paise to close at 73.31 against the US dollar on Wednesday, supported by positive domestic equities and unabated foreign fund inflows. A weaker greenback in the overseas markets also supported the rupee, forex dealers said.
At the interbank forex market, the domestic unit opened at 73.35 against the US dollar and witnessed an intra-day high of 73.26 and a low of 73.36. The local unit finally settled at 73.31, registering a rise of 11 paise over its previous close.
On Tuesday, the rupee had settled at 73.42 against the American currency. In the last five trading sessions, the Indian rupee has gained 53 paise.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.21 per cent to 89.80.
On the domestic equity market front, the BSE Sensex ended 133.14 points or 0.28 per cent higher at 47,746.22, while the broader NSE Nifty jumped 49.35 points or 0.35 per cent to 13,981.95.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 2,349.53 crore on Tuesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 0.80 per cent to USD 51.50 per barrel
