MUMBAI: The rupee appreciated by 23 paise to 70.21 against the US dollar in opening trade on Wednesday.
“Investors sentiments were buoyed after US President Donald Trump on Tuesday hoped that the world's top two economies would be able to reach an agreement”, Forex dealers said.
The rupee opened strong at 70.32 at the interbank forex market then gained further ground and touched 70.21 amid a positive opening in domestic equities, displaying gains of 23 paise over its last close.
On Tuesday, the rupee had recovered 7 paise to close at 70.44 to the US dollar.
Meanwhile, foreign fund outflows weighed on the domestic currency and restricted the upmove.
As per provisional exchange data, foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 2,011.85 crore on a net basis on Tuesday.
Brent crude futures, the global oil benchmark, eased 0.31 per cent to USD 71.02 per barrel.
Meanwhile, the benchmark BSE Sensex was trading higher by 87.83 points, or 0.24 per cent to quote at 37,410.15 while the NSE Nifty was trading at 11,245.00, down by 22.95 points, or 0.20 per cent.
With inputs from PTI