The rupee strengthened by 19 paise to 64.13 against the US dollar in opening trade on Wednesday aided by stronger domestic equities. The weakness in dollar against some currencies overseas after US Federal Reserve chairman Jerome Powell said that the central bank would remain alert to risks to financial stability in the wake of recent market rout also supported the rupee’s upwards movement.
The US dollar hit a five-month low against the yen after Japan’s economy recorded its longest growth streak in 28 years. Besides, industrial output grew 7.1 per cent in December and selling of the American currency by exporters supported the rupee, forex dealers said. Forex market was closed on Tuesday due to a public holiday.
On Monday, the rupee had ended 8 paise higher at 64.32 against the dollar on fresh selling of the American currency by exporters and banks in line with strong domestic equity market. The benchmark BSE Sensex rose 172.96 points, or 0.50 per cent, to trade at 34,473.43, while the NSE Nifty climbed 41.50 points, or 0.39 per cent, to 10,581.25 today.