Rising for the fourth straight session, the rupee appreciated by 10 paise to close at nearly a month high of 73.91 against the US dollar on Wednesday as positive development on the coronavirus vaccine front enthused investor sentiment.
At the interbank forex market, the domestic unit opened at 73.98 against the greenback and witnessed an intra-day high of 73.88 and a low of 74.02.
The local unit finally closed at 73.91 against the American currency, registering a rise of 10 paise over its previous close.
On Tuesday, the rupee had climbed 10 paise to close at 74.01 against the US dollar.
The domestic unit had closed at 73.87 against the greenback on October 28.
Traders said risk appetite increased on news that US President-elect Joe Biden plans to nominate former Federal Reserve chairwoman Janet Yellen as treasury secretary. Moreover, a weak American currency in the overseas market also supported the rupee.
The rupee appreciated for the fourth consecutive session against the US dollar this Wednesday, tracking gains in most regional currencies led by a broad dollar decline.
“The offshore Chinese yuan and the Korean won led Asian currencies higher against the dollar. The dollar index slipped this Wednesday afternoon trade adding to Tuesday’s fall and lent support to the local unit.
“Lack of negative news flow across global markets and the risk-on mode continued to lend support,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.10 per cent to 92.13.
Many candidates are reporting positive results in the development of a COVID-19 vaccine. Drugmaker AstraZeneca has said its potential vaccine, being developed with Oxford University, was up to 90 per cent effective. Unlike other vaccine candidates, it claimed that its vaccine will not require ultra-cold temperature for storage, making it easier for distribution. Pfizer and Moderna have also cited study results showing their vaccines were almost 95 per cent effective.