MUMBAI: The rupee appreciated 18 paise to provisionally settle at 75.54 against the US dollar on Friday, tracking higher domestic equities and weakness in the American currency.
Forex traders said positive cues from domestic equities and significant foreign fund inflows supported the local unit.
At the interbank foreign exchange, the rupee opened at 75.36, then pared some initial gains to finally close at 75.54 against the US dollar, registering a rise of 18 paise over its previous close. During the day, the domestic unit hit an intra-day high of 75.27 and a low of 75.59 against the US dollar.
On Wednesday, the rupee had settled at 75.72 against the US dollar. Forex market was closed on Thursday on account of Buddha Purnima. Domestic bourses were trading on a positive note with the benchmark Sensex trading 316.53 points higher at 31,759.91 and broader Nifty up 83.90 points at 9,282.95.
Foreign institutional investors were net buyers in the capital market, as they bought equity shares worth Rs 19,056.49 crore on Thursday, according to provisional exchange data.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.05 per cent down at 99.84.