The rupee closed stronger at 55.21 against the dollar on a stronger euro and strong capital inflows. On Tuesday, it had closed at 55.34.
The domestic unit opened higher at 55.23 against the dollar led by the euro and Asian markets. The American currency stayed weak against other overseas currencies.
Meanwhile, the German Constitutional Court allowed the ratification of the Euro Zone bailout fund, in favour of the European Central Bank’s bond-buying programme aimed at capping rising borrowing costs in Europe.
Positive domestic equity markets further supported the rupee. The BSE benchmark Sensex ended at 18,000.03 up by 147.08 points (up 0.82 per cent).
Investors will eye the inflation figures due to be released later this week. A lower than expected IIP numbers did not dent the rupee much.
Call rates and G-Secs
The overnight call money rates closed unchanged from previous closed of 8 per cent.
The 10-year benchmark 8.15 per cent government bond closed lower at Rs 99.65 (yield: 8.19 per cent) from a close of Rs 99.76 (yield: 8.18 per cent) on Tuesday.