Rupee gains sharply against US dollar as MSCI rejig spurs flows

The rupee strengthened sharply against the US dollar on Wednesday as the semi-annual rebalancing of the MSCI India index propelled inflows and as some foreign banks sold the greenback on behalf of overseas firms looking to invest here, dealers said. 

Strength in the Chinese yuan also lifted the rupee along with other Asian currencies, dealers said, adding that in November, the domestic currency had logged its first monthly gain since December 2021. 

The rupee closed at 81.43 per US dollar on Wednesday as against 81.72 per dollar on Tuesday. In November, the rupee gained 1.65 per cent against the dollar,