Mumbai: The rupee erased most of its initial gains but managed to settle marginally 4 paise higher at 75.41 (provisional) against the US dollar Tuesday as heavy buying in domestic equities supported the local unit.
Analysts said that uncertainty around the new coronavirus variant Omicron and foreign capital outflows continued to check rupee’s rise.
At the interbank forex market, the local unit opened strong at 75.31 against the greenback and witnessed an intra-day high of 75.26 and a low of 75.49 during the day’s trade.
It finally ended at 75.41 a dollar against the previous close of 75.45.
Brent crude futures, the global oil benchmark, rose 2.00 per cent to USD 74.54 per barrel.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.05 per cent at 96.37.
On the domestic equity market front, the BSE Sensex ended 886.51 points or 1.56 per cent higher at 57,633.65, while the broader NSE Nifty surged 264.45 points or 1.56 per cent to 17,176.70.
Foreign institutional investors remained net sellers in the capital market Monday, as they offloaded shares worth Rs 3,361.28 crore, as per exchange data.