On Wednesday, the rupee traded 7 paise higher at 75.57 against the US dollar. This was followed by gains in the domestic equity market and a weak greenback in the overseas market.
Initial success in Covid-19 vaccine trials also aided sentiment.
On the domestic front, market participants will be keeping an eye on the growth number that will be released later next week. The weaker-than-expected number could continue to keep the rupee weighed down against the US dollar.
“For the day, we expect the rupee (Spot) to quote in the range of 75.40 and 76.50,” brokerage firm Motilal Oswal Financial Services said in a report.
The dollar remained under pressure for the second successive session after the Fed Chairman in his testimony said nearly $3 trillion in federal rescue programs rolled out over the past two months were working to support an economy devastated by the novel coronavirus.
Losses for the dollar extended after housing starts number came in much lower in April compared to the previous month.