The rupee rose 16 paise to 74.46 (provisional) against the US dollar on Tuesday due to better demand for risky assets following positive news on the coronavirus vaccine.
In addition, a weak dollar overseas also supported the local entity.
In the interbank foreign exchange market, the domestic unit strengthened against the US dollar at 74.43 and later touched a high of 74.38 in day trading. The local unit eventually closed at 74.46 against the US dollar, registering a gain of 16 paise over its previous close. The rupee closed at 74.62 on Friday against the US dollar.
The foreign exchange market was closed on Monday due to Balipratipadap.
US-based biotechnology giant Modern announced on Monday that its Kovid-19 vaccine has proven effective in preventing fatalities of up to 94.5 percent.
The announcement of the Cambridge, Massachusetts-based Modern comes just a week after Pfizer and Bioentech stated that their COVID-19 vaccine candidates were found to be more than 90 percent effective in preventing Kovid-19 in participants.
Meanwhile, the Dollar Index, which estimates the strength of the greenback against a basket of six currencies, fell 0.24 percent to 92.41.
On the equity front, the 30-share BSE index lost 314.73 points or 0.72 percent to end at 43,952.71 and the NSE Nifty rose 93.95 points or 0.74 percent to close at 12,874.20.
Global oil benchmark Brent crude futures rose 0.18 percent to $ 43.90 per barrel.
STAY TUNED WITH US FOR MORE INTERESTING CONTENT ONLY ON DESINEW.XYZ