MUMBAI, Aug. 18 -- The Indian rupee strengthened on Tuesday to close at a one-month high against the US dollar tracking firm domestic equities.

The domestic currency closed at 74.76 against the US dollar, a level last seen on 21 July, up 13 paise from its previous close of 74.89.

The Indian unit opened at 74.77 and swung between a high of 74.74 and a low of 74.88. Year to date, the Indian rupee has shed 4.52%.

Forex traders said positive trend in the equity markets, a weak US currency and sustained foreign fund inflows supported the rupee, while concerns over rising covid-19 cases weighed on investor sentiment.

Indian benchmark equity indices settled higher on Tuesday led by a rally in banks and metal stocks. Sensex closed at 38,528.3...