Forex traders claimed that ongoing withdrawals of foreign funds impacted investor sentiment and constrained the inclination toward appreciation.
Mumbai: Early on Thursday, the rupee strengthened 9 paise to 82.73 against the US dollar, helped by falling crude oil prices and a strong upward trend in local markets.
Forex traders claimed that ongoing withdrawals of foreign funds impacted investor sentiment and constrained the inclination toward appreciation.
The domestic unit started out at the interbank foreign exchange at 82.75 against the dollar before moving up to touch 82.73, indicating an increase of 9 paise from its previous closing.
The rupee rose from its record low on Wednesday and finished the day at 82.82 versus the dollar.
The dollar index, which measures the strength of the dollar against a basket of six different currencies, decreased 0.04 percent to 104.21.
The benchmark for world oil, Brent crude futures, increased 0.99% to USD 78.61 a barrel.
The dollar was down elsewhere, but strong dollar bids throughout the session prevented the rupee from strengthening. According to a research note from IFA Global Research Academy, the local unit has recently been very range-bound.
“We anticipate sideways price movement for the rupee with a trading range of 82.60-82.90,” the statement continued.
The 30-share BSE Sensex was up 162.86 points, or 0.27 percent, to 60,820.31 on the domestic equity market. The NSE Nifty, a wider index, increased by 60.20 points, or 0.33 percent, to 18,103.15.
According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth 2,620.89 crore on Wednesday, making them net sellers in the capital markets.