The rupee settled four paise down at 61.40 against the dollar on Monday. Forex market remained closed on Tuesday on account of "Muharram".

Traders said besides selling of the American currency by exporters and banks, continued foreign fund inflows and a higher opening in the domestic equity market, helped the local currency to strengthen but the dollar's gain against other currencies overseas, capped the rupee's rise.

Meanwhile, the benchmark BSE Sensex soared by 111.45 points, or 0.40 per cent, to 27,971.83 in early trade on Wednesday.

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