In early trade today, the rupee rose 13 paise to 81.82 against the US dollar, boosted by foreign fund inflows.
At the interbank exchange rate, the domestic unit opened at 81.93 per dollar, later rising to 81.82, up 13 paise from its previous close.
On Wednesday, the rupee closed at 81.95 against the US currency.
At the same time, the dollar index, which shows the strength of the dollar against a basket of six currencies, decreased by 0.02 percent and reached 105.63.
Overall, higher US bond yields and risk-averse capital sentiment create a base case for a stronger US dollar, said CR Forex Advisors MD Amit Pabari, FDI and FPI acted as life support for the rupee.
“In March, they (FPIs) are net investors with over Rs 10,000 crore shares…we may see the rupee trading in the range of 81.50 to 82.50 in the short term,” Pabari said.
Foreign institutional investors (FIIs) were net buyers in the equity market on Wednesday as they bought shares worth Rs 3,671.56 crore, according to stock exchange data.
Brent crude futures, the global oil benchmark, rose 0.02 percent to $82.66 a barrel on Thursday.
In the domestic stock market on Thursday, the 30-share BSE Sensex was down 131.61 points, or 0.22 percent, at 60,216.48. The broader NSE Nifty was down 33.30 points, or 0.19 percent, at 17,721.10.
(Except for the title, this story was not edited by NDTV staff and was published on a syndicated channel.)
Featured image of the day
How to manage your money when prices are rising?