The rupee on Wednesday recovered from lows in early trade and strengthened by 7 paise to 83.44 against the US dollar amid a positive trend in domestic equity markets and fall in crude oil prices overseas. Forex traders said a value-buying spree led to a rise in equity markets, which supported the local currency.
The rupee had fallen sharply on Tuesday after the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) got a lesser-than-expected majority in the general election results.
The rupee opened at 83.50 per dollar at the Interbank Foreign Exchange (Interbank Foreign Exchange) market and after initial deals, it reached 83.44 per dollar, showing a rise of seven paise over its previous close.
The rupee closed at 83.51 against the US dollar on Tuesday. Meanwhile, the dollar index, which measures the strength of the US dollar against a basket of six major currencies, rose 0.09 percent to 104.14.
Global oil benchmark Brent crude futures were trading 0.03 per cent lower at USD 77.50 per barrel. The 30-share BSE index Sensex rose 172.89 points to 72,251.94 in early trade.
According to stock market data, foreign institutional investors (FIIs) remained sellers in the capital market on Tuesday and sold shares worth a net Rs 12,436.22 crore.
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