The rupee recovered 7 paise to 70.14 against the US dollar in early trade Wednesday on fresh selling of the American currency by exporters and banks amid early gains in domestic equities.
Forex dealers said weakness in the dollar against some currencies overseas supported the domestic unit, but rising crude oil prices and foreign fund outflows capped the rise. At the Interbank Foreign Exchange (forex), the rupee opened higher at 70.08 but it slipped partially to quote 7 paise higher at 70.14.
The unit was also boosted by a higher opening of the domestic equities market tracking positive cues from Asian stocks amid rising hopes of US and China striking a trade deal. US President Donald Trump, on Tuesday, said that talks with Beijing on a trade deal were going on “very well”.
Meanwhile, the benchmark BSE Sensex rose 226.01 points, or 0.63 per cent, to 36,206.94 in opening session.
The BSE Sensex jumped over 200 points to reclaim the 36,000 mark in opening session Wednesday, extending its winning run for a fourth session on buying by domestic investors, tracking a firming trend overseas amid optimism ahead of quarterly results of bluechips.
The 30-share index rose 226.01 points, or 0.63 per cent, to 36,206.94. The gauge gained 467 points in previous three sessions.
Similarly, the 50-share NSE Nifty trading 51.15 points, or 0.48 per cent, higher at 10,853.30 after rising to 10,868.80.
Sectoral indices, led by IT, teck, realty, auto, capital goods, bankex and power, were trading higher by up to 1.38 per cent.
Market sentiments was upbeat largely in tandem with a positive trend at other Asian bourses, supported by rising hopes that the US and China would strike a deal to end their trade war, traders said.