Indian rupee erased its early gains but ended marginally higher at 75.47 per dollar, amid buying seen in the domestic equity market post prime minister announced fiscal package.
It opened 23 paise higher at 75.27 per dollar versus Tuesday's closing 75.50 per dollar.
At 14:10 IST, the Sensex was up 634.79 points or 2.02% at 32005.91, and the Nifty was up 183.60 points or 2.00% at 9380.15.
"The rupee further stood its ground on exporters’ dollar sales, as well as likely RBI intervention. Going forward, an effective fiscal stimulus package will help the rupee appreciate towards 74.80 levels in the near-term. Even though risks of the virus persist and losses in equities continue to weigh, rupee looks to remain supported by the level of 76.60 mark at this stage," said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.
Oil prices fell in early Asian trading on Wednesday after industry data showed a rise in U.S. crude inventories and concerns mount about a possible second wave of the coronavirus pandemic in countries easing lockdowns.
As government announced Rs 20 lakh crore stimulus, the rupee will see volatility in coming days. However, the USD-INR pair can witness support near 75 levels once this volatility cools off, said ICICIdirect.
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