Rupee edges 3 paise higher to close at 74.19 against US dollar

The rupee appreciated by 3 paise to close at 74.19 (provisional) against the US dollar on Tuesday, supported by a strong rally in the domestic equity market.

However, a strong dollar in the overseas markets and rising crude prices weighed on the investor sentiment, forex traders said.

At the interbank forex market, the local unit opened strong at 74.12 against the greenback and moved in a range of 74.11 to 74.20 in the day trade.

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It finally ended at 74.19 against the American currency, registering a rise of 3 paise over its previous close of 74.22.

On the domestic equity market front, the BSE Sensex ended 403.19 points or 0.73 per cent higher at 55,958.98, while the broader NSE Nifty advanced 128.15 points or 0.78 per cent to 16,624.60.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.07 per cent to 93.04.

Brent crude futures, the global oil benchmark, increased 1.34 per cent to $69.67 per barrel.

Foreign institutional investors remained net sellers in the capital market on Monday as they offloaded shares worth Rs 1,363.36 crore, according to the exchange data.