The Indian rupee strengthened by 6 paise to settle at 85.51 (provisional) against the US dollar on Wednesday, buoyed by strong foreign fund inflows and a weaker greenback against major global currencies.
However, traders noted that market participants remained cautious ahead of the Consumer Price Index (CPI) data release on Thursday, which limited further appreciation.
At the interbank foreign exchange market, the rupee opened at 85.53, touched a high of 85.42 and a low of 85.56 during the session, before ending at 85.51 — up from its previous close of 85.57.