The rupee today jumped sharply against the US dollar, lifted by a weak greenback and strong domestic equity markets. The rupee appreciated 59 paise to close at a three-week high 75.01 against the US dollar, as compared to the previous close of 75.60. The rupee opened at 75.49 against the US dollar and gained further ground and during the day traded in the range of 74.98 to 75.53.
Global risk sentiment improved today after Pfizer reported encouraging coronavirus vaccine test results.
The first of four experimental COVID-19 vaccines being tested by Pfizer and its German partner BioNTech showed encouraging results in very early testing of 45 people, the companies said on Wednesday.
"Rupee ended strongly up on strong inflows into local stocks even as upbeat economic data from the US diminished safe-haven appeal of dollar. Globally risk appetite improved as increasing optimism for a safe and effective COVID-19 vaccine eased concerns that another round of business lock-downs was likely. Rupee has now touched an important support zone of 75," said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.22% to 96.93.
The 30-share BSE benchmark Sensex today ended over 400 points higher while reclaimed 10,550 levels.
Foreign institutional investors were net sellers in the capital market on Wednesday as they sold shares worth ₹1,696.45 crore.
Brent crude futures, the global oil benchmark, rose 1.40% to $42.62 per barrel.
In India, the coronavirus-linked death toll rose to 17,834 and the number of infections spiked to 6,04,641, according to the health ministry.