Mumbai, July 28 (PTI): The rupee appreciated 22 paise to close at 79.69 against the US dollar on Thursday, as a rally in the domestic equities and less hawkish signals from the US Fed triggered risk-on sentiments in the markets.
Fresh foreign capital inflows also supported the domestic unit, forex traders said.
However, elevated global crude prices and a strong greenback overseas capped the rupee's gain, they added.
At the interbank forex market, the local unit opened sharply up at 79.80 against the greenback. During the session, the local unit witnessed an intra-day high of 79.64 and a low of 79.85 against the American currency.
The rupee finally settled at 79.69, registering a rise of 22 paise over its previous close.
On Wednesday, the rupee declined 13 paise to close at 79.91 against the US dollar.
The US Federal Reserve on Wednesday raised key interest rates by 75 basis points for the second straight month.
According to Sugandha Sachdeva, Vice President - Commodity and Currency Research, Religare Broking, the Indian rupee has managed to clinch gains of around 0.30 per cent as the slide in the US dollar on the back of less hawkish US Fed rhetoric has boosted "risk on" sentiments in the markets and supported the local unit.
"Looking ahead, we foresee the Indian rupee to face initial resistance at the 79.40 mark, and only a move past the same would open the doorway for further appreciation towards the 79 mark in the near-term," Sachdeva said.
