Mumbai: On Wednesday, the rupee appreciated by 21 paise to 69.09 against the US dollar in opening trade on Wednesday, driven by weakening of the greenback in overseas markets. The rupee opened strong at 69.26 at the interbank forex market then gained further ground and touched 69.09 amid a weak opening in domestic equities, displaying gains of 21 paise over its last close.
The rupee on Tuesday had strengthened by 37 paise to close at 69.30 against the US dollar. Forex dealers said, selling of the American currency by exporters supported the rupee. Moreover, IMF's bullish growth outlook for the Indian economy also added strength to the local currency.
Besides, strength in dollar against major rival currencies on stronger US payroll data and rising crude prices also kept pressure on the Indian rupee, dealers said. Here to be noted that the rupee had declined by 44 paise to close at 69.67 against the US dollar on Monday. Meanwhile, foreign investors (FIIs) remained net buyers in the capital markets, putting in Rs 329.60 crore on a net basis Monday, as per provisional data.
On Tuesday, to be noted that Brent crude futures, the global oil benchmark, rose 0.13 per cent to USD 71.19 per barrel. Meanwhile, domestic bourses opened on a cautious note on Tuesday with benchmark indices Sensex trading 96.38 points down at 38,796.91 and Nifty up 13.50 points at 11,618.00.