MUMBAI: The Indian rupee rose, snapping two days of falls, tracking gains in riskier emerging market assets after the US Congress struck a deal to avert a debt default, although falling domestic shares capped further gains.

The deal failed to buoy the dollar, which fell against a basket of currencies as investors worried about the economic impact from the more than two-week US government shutdown.

Gains in other Asian currencies also supported sentiment for the rupee. Still, Indian shares fell after software services exporters such as Tata Consultancy Services retreated from recent highs due to profit-taking.

The rupee closed at 61.23/24 per dollar compared with 61.8350/8450 on Tuesday. The unit moved in a range of 61.20 to 61.73 during the session.

Financial markets were closed on Wednesday for a local holiday.

In the offshore non-deliverable forward PNDF, the one-month contract was at 61.64, while the three-month was at 62.61.

In the currency futures market INRFUTURES, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 61.36 with total traded volume at $2.05 billion.