The Indian rupee strengthened on Tuesday to close at a two-week high against the US dollar tracking positive domestic equities and hopes of coronavirus vaccine.
The local currency closed at 74.75 against the American dollar -- a level last seen on 6 July -- up 17 paise from its previous close of 74.92.
The Indian unit opened at 74.79 and swung between a high of 74.73 and a low of 74.87. Year to date, the Indian currency has shed 4.51%.
Forex traders said positive opening in domestic equities, foreign fund inflows and hopes of covid-19 vaccine supported the rupee.
A coronavirus vaccine created by the University of Oxford appears safe and induces a strong immune response within the body, scientists announced on Monday after the first phase of human trials.
In India, AIIMS-Delhi on Monday began recruiting volunteers for conducting human clinical trials of the indigenous covid-19 vaccine candidate Covaxin.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04% to 95.87.
At 03:17 pm, the BSE benchmark Sensex rose 493.21 points or 1.32% to 37,912.20, while the Nifty 50 was at 11,156.70, up 134.50 points or 1.22%.
Foreign institutional investors have net sold $2.88 billion and $14.24 billion in equity and debt markets respectively since the beginning of 2020, while domestic institutional investors invested ₹85,147.76 crore in stocks, according to data on the exchanges.
Brent crude futures were down 0.14% at $43.34 per barrel.
Meanwhile, the number of cases around the world linked to COVID-19 has crossed 1.47 crore and the death toll has topped 6.09 lakh.
In India, the death toll due the disease rose to 28,084 and the number of infections has touched 11,55,191, according to the health ministry.
PTI contributed to the story.