The Indian rupee strengthened 18 paise to 74.43 against the US dollar early in Thursday, following positive domestic actions.

At the interbank exchange rate, the national unit opened at 74.46 against the dollar, then edged up to 74.43, registering a gain of 18 paise from its previous close.

On Tuesday, the rupee stood at 74.61 against the US dollar.

The Forex market was closed on Wednesday due to ” Bakri Id ”.

Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, was trading 0.01% at 92.76.

The rupee opened stronger on Thursday as the dollar eased and risk appetite improved, Reliance Securities said in a research note.

The rally in US stocks suggests investors believe the economic impact of the coronavirus is likely to be fairly limited.

In addition, the increase in infection is expected to make the Federal Reserve all the more reluctant to remove its homes, the note adds.

On the domestic stock market front, BSE Sensex traded 572.74 points or 1.10 percent higher at 52,771.25, while the larger NSE Nifty rose 161.45 points or 1.03 percent to 15,793.55.

Meanwhile, foreign institutional investors were net sellers in the capital market on Tuesday as they dumped stocks worth Rs 2,834.96 crore, according to exchange data.

Global oil benchmark Brent crude futures fell 0.42% to $ 71.93 per barrel.