Rupee gains 17 paise to settle at 94.58 against Us dollar

Positive domestic equities market also favoured the local currency even as the outcome of the US midterm elections improved global sentiment, forex traders said.

In the interbank foreign exchange market, the rupee opened at 94.61 and hit the high of 94.50 and the low of 94.87 against the greenback. The unit finally settled at 94.58 (provisional), up 17 paise from its previous closing level.

On Tuesday, the domestic currency rose 9 paise to close at 94.75 against the US dollar.

"The US midterm outcome improved global sentiment, raising expectations of a more measured approach to trade and tariff policies and potentially supporting FII flows into emerging markets," said Vinod Nair, Head of Research, Geojit Investments Limited.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 101.18, lower by 0.53 per cent. US Treasury yields also declined amid expectations of a favourable outcome for the Democratic Party in the midterm ​elections.

Brent crude, the global oil benchmark, declined 0.73 per cent to USD 102.84 per barrel in futures trade even as geopolitical uncertainties continued.

On the domestic equity market front, Sensex rose 383.55 points, or 0.50 per cent, to settle at 77,301.40, while the Nifty jumped 149.75 points or 0.63 per cent to 23,960.60. Both indices ended over 1.5 per cent higher in the preceding session.

Foreign Institutional Investors (FIIs) remained net buyers for the third consecutive day on Tuesday, purchasing equities worth Rs 6,836.81 crore, according to exchange data.