The rupee rose by 5 paise to close at 90.67 against the US dollar

The rupee rose 5 paise to 90.67 (provisional) against the US dollar on Wednesday, driven by foreign fund inflows and positive domestic equity markets. However, higher global crude prices and a strengthening dollar blocked sharp gains in the local unit, forex traders said.

At the interbank forex market, the rupee opened at 90.60 against the US dollar and traded within a narrow range of 90.60-90.71 before settling at 90.67 (provisional), 5 paise higher than the previous close.The rupee gained 2 paise to trade at 90.72 against the US dollar on Tuesday.

“The rupee remained in range while the dollar was protected by the RBI,” said Anil Kumar Bhansali, head of finance and executive director of Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, traded 0.08 percent higher at 97.22.

“The dollar index was slightly higher, with analysts expecting room for a near-term recovery after a prolonged slump. Strong US growth and interest in foreign investment supported the dollar,” Bhansali added. Brent crude, the global oil benchmark, was 0.22 percent higher at $67.57 per barrel in futures trading.

In the domestic equity market, Sensex rose 283.29 points to 83,734.25, while the Nifty rose 93.95 points to 25,819.35.

On Tuesday, foreign institutional investors turned net buyers and bought shares worth Rs 995.21 crore, according to exchange data.