The Indian rupee today appreciated by 28 paise to close at one week high of 55.36 against the US currency on steep rise in local stocks amid dollar selling by exporters and some banks.
Weakness in dollar overseas also boosted the rupee sentiment while sustained capital outflows restricted the rupee rise to some extent, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the local unit opened strong at 55.45 a dollar from overnight close of 55.64 and touched a low of 55.61 in late morning deals.
Later, it closed at 55.36, showing a rise of 0.50 per cent.
The Indian benchmark
Sensex registered biggest gains of nearly 434 points in the current calendar year, extending gains for the third straight trading session.
The dollar index was down by over 0.4 per cent against a basket of currencies while New York crude oil was quoting above $85 a barrel in European market on Wednesday.
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