Rupee rises by 10 paise to 3-week high

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The rupee appreciated by 10 paise to close at a three-week high of 74.01 against the US dollar on Tuesday on sustained foreign fund inflows and positive development over coronavirus vaccine.

Traders said investor risk sentiment improved amid growing hopes of an early rollout and efficacy of COVID-19 vaccines, helping the local unit to extend gains for a third straight session. Besides, strong domestic equities, sustained foreign fund inflows and weak American currency also supported the rupee.

At the interbank forex market, the domestic unit opened at 74.10 against the US dollar and then touched a high of 73.88 and a low of 74.12 in day trade. The local unit finally ended at 74.01 against the greenback, registering a rise of 10 paise over its previous close.