The rupee on Thursday strengthened by another five paise to 64.05 against the US dollar following sustained selling of the American currency by exporters and banks.
The home currency has appreciated by 7 paise in two days despite prevailing geopolitical uncertainties.
Extreme bearish dollar overseas also supported the rupee recovery momentum.
However, sluggish local capital markets along with massive capital outflows capped rupee’s gains to some extent.
The rupee today opened on a positive note at 64.04 as compared to overnight close of 64.10 at the interbank foreign exchange market.
The local unit gained past 64—mark to hit a fresh intra—day high of 63.98 in late afternoon deals before ending at 64.05, making a smart gain of 5 paise
According to provisional data, FPIs had turned net buyers in equity and debt markets yesterday after two days of selling which supported the rupee. They had invested Rs 272.03 crore on a net basis yesterday.
Yesterday, the domestic currency rose marginally by 2 paise to 64.10 against the dollar even as geopolitical worries continued to cast shadow over forex trading.