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The rupee appreciated 8 paise to 82.93 against the U.S. dollar in early trade on Thursday tracking positive domestic equities.
Forex traders said the rupee is witnessing a range-bound trading against the dollar as the support from positive domestic equities was negated by elevated crude oil prices and a firm U.S. dollar.
At the interbank foreign exchange, the rupee opened at 82.98 against the dollar, and touched 82.93, registering a rise of 8 paise over its previous close.
On Wednesday, the rupee closed at 83.01 against the U.S. currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.13% to 104.62.
Brent crude futures, the global oil benchmark, advanced 0.37% to $92.22 per barrel.
According to Finrex Treasury Advisors LLP Head of Treasury Anil Kumar Bhansali, the rupee was sold off on Wednesday as oil companies continued their relentless buying of U.S. dollar.
RBI seems to be present at 83 and above levels selling U.S. dollar, he said.
On Thursday, as the market awaits U.S. retail sales, the rupee should continue to see a range-bound trade.
In the domestic equity market, the 30-share BSE Sensex advanced 189.01 points or 0.28% to 67,656. The broader NSE Nifty was up 61.45 points or 0.31% to 20,131.45.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹1,631.63 crore, according to exchange data.
