MUMBAI: Extending gains for the fourth day on Wednesday, the Indian rupee appreciated by 17 paise to close at 46.20/21 a dollar as exporters sold the US currency, which remained weak against other major currencies.
The rupee also drew support from fresh capital inflow into equity markets amid lack of dollar demand from oil refiners.
The domestic unit moved in a limited range of 46.18 to 46.39 a dollar during the day after resuming steady at 46.38/39 a dollar.
Dealers at the Interbank Foreign Exchange (forex) market said exporters sold the dollar which fell to a seven-week low against major world currencies.
The rupee sentiment was also boosted by sustained foreign inflow into Indian equity.
The dollar hit a 10-month low against Japanese yen on the London Exchange in early trade after the Federal Reserve policy makers termed the fall in US currency as "orderly" and reinforced the view that interest rates will remain low.
Indian benchmark Sensex ended 68 points higher while Asian indices closed in the green. The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 46.34 and for the euro at Rs 69.50.
Rupee premiums on the forward dollar ended slightly higher on mild paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in April ended marginally higher at 55-1/2-57-1/2 paise as against 55-57 paise on Tuesday and far-forwards maturing in October also edged up to 118-1/2-120-1/2 paise as compared to 118-119 paise yesterday.
In cross-currency trade, the domestic currency declined against the pound sterling, the euro and the Japanese yen. The rupee fell against the pound to finish at Rs 77.24/26 per pound from the overnight level of Rs 76.64/66 per pound and dropped against the Euro to end at Rs 69.55/57 per euro from Rs 69.31/33 per euro previously.
The rupee also slipped against the Japanese yen to end at Rs 52.75/77 per 100 yen from the yesterday's closing level of Rs 52.32/34 per 100 yen.
Source : The Economic Times