On Wednesday, the rupee appreciated 5 paise to close at 73.58 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.44 per cent lower at 90.05.
"The dollar recovered from the lows of the session, but still ended weak in a choppy trading session after the Federal Reserve disappointed investors expecting a shift toward more purchases of longer-dated bonds," Reliance Securities said in a research note.
The US Federal Reserve pledged to keep its benchmark interest rate near zero until an economic recovery is complete.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 84.80 points higher at 46,751.26, and the broader NSE Nifty advanced 34.50 points to 13,717.20.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,981.77 crore on a net basis on Wednesday, according to exchange data.
Brent crude futures, the global oil benchmark, were trading at USD 51.52 per barrel, higher by 0.86 per cent.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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