The rupee rose 22 paise to close at 74.91 provisional against the on Wednesday as positive domestic equities and a weak American currency in the overseas markets boosted investor sentiment.
The domestic unit opened at 74.96 against the dollar, as it witnessed an intra-day high of 74.79 and a low of 75.02 during the day's trade. It ended up at 74.91 a dollar.
The rupee fell by 6 paise to 75.13 on Tuesday due to concerns over the impact of the new COVID variant on the economy.
The rupee has been under pressure over the last few trading sessions because of the detection of a new coronaviruses variant that has caused growth concerns and hurt risk appetite.
The dollar index, which measures the strength of the dollar against a basket of six currencies, declined by 0.03 per cent to 95.96.
The global oil benchmark for crude oil went up 4.75 per cent to USD 72.52 per barrel.
The BSE Sensex surged 619.92 points or 1.09 per cent to end at 57,684 on the domestic equity market front. The NSE Nifty increased by 183.70 points or 1.08 per cent to 17,166, while the broader NSE Nifty increased by 1.08 per cent or 183.70 points. Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 5,445. According to exchange data, 25 crore were reported to have been made up of.
India's GDP went up by a better than expected 8.4 per cent in the July-September quarter to cross pre-pandemic levels.
The Union government's fiscal deficit was 36.3 per cent of the budget estimates at the end of October 2021, due to improvements in revenue collection.