Indian rupee, the currency benchmark, strengthened by 13 paise to 73.36 per dollar on Wednesday, supported by positive domestic equities and weak US currency.
The domestic unit opened at 73.39 in the interbank forex market, and gained by 13 paise to 73.36, over its previous close.
On Tuesday, the rupee depreciated by 12 paise to settle at 73.49 per dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.18 per cent down at 92.90. The dollar index fell to a one-month low against a basket of major currencies, amid news of renewed government spending to recover the US economy from the coronavirus pandemic-induced recession.
"The risk sentiment continues to remain upbeat on Democrat leader Nancy Pelosi's optimistic comments on the stimulus deal which seems to suggest Democrats and Republicans have reached a consensus on most aspects barring a couple of issues like state and local aid and assistance to working families," said Abhishek Goenka, Founder and CEO, IFA Global.
On the domestic equity market front, Sensex gained 400 points higher to trade at 40,945 and Nifty rose 109 points to 12,006
Foreign portfolio investors (FPIs) bought shares worth Rs 1,585.07 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,633.23 crore in the Indian equity market on 20 October, provisional data showed.
Brent crude futures, the global oil benchmark, rose 0.58 per cent to USD 42.91 per barrel. Crude oil prices negated on worries of slowing demand due to tighter lockdown measures to curb the rising coronavirus cases. Besides, surge in
production from Libya has been leading towards an oversupply in the crude oil market.
Worldwide, there were 410 lakh confirmed cases and 11.29 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 76-lakh mark and the death toll from COVID-19 infections rose to 1.15 lakh, as of today.