According to forex traders, sustained foreign fund outflows weighed on investor sentiment and limited the appreciation bias.
In early trade on Thursday, the rupee rose 9 paise to 82.73 against the US dollar, supported by falling crude oil prices and a firm trend in domestic equities.
According to forex traders, sustained foreign fund outflows weighed on investor sentiment and limited the appreciation bias.
The domestic unit opened at 82.75 against the dollar on the interbank foreign exchange, then rose to 82.73, a 9-paise increase from its previous close.
The rupee recovered from its all-time low on Wednesday, closing at 82.82 against the dollar.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, fell 0.4% to 104.21.
Brent crude futures, the global benchmark for oil, rose 0.99% to USD 78.61 per barrel.
Despite the greenback’s weakness elsewhere, the rupee remained under pressure from dollar bids throughout the session. According to an IFA Global Research Academy research note, the local unit has recently been extremely range bound.
“We expect the rupee to trade sideways in the 82.60-82.90 range,” it added.
The 30-share BSE Sensex was trading 162.86 points, or 0.27 percent, higher at 60,820.31 in the domestic equity market. The NSE Nifty gained 60.20 points, or 0.33 percent, to 18,103.15.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, offloading shares worth Rs 2,620.89 crore.
