Mumbai: The Indian rupee appreciated by 2 paise, trading at 83.49 against the US dollar in early Thursday trade, buoyed by positive domestic equity trends despite pressure from high crude oil prices.
Opening at 83.49 at the interbank foreign exchange market, the rupee marked a slight improvement from its previous close. On Wednesday, the rupee remained stable, settling 2 paise lower at 83.51 against the US dollar.
Amit Pabari, Managing Director of CR Forex Advisors, noted that while consistent demand for the dollar from local importers has limited the rupee's potential gains, the outlook remains positive, supported by recent favorable economic indicators. The rupee's prospects are further bolstered by robust foreign inflows, a positive economic forecast, and India's impressive macroeconomic growth, which is currently the fastest among large economies.
Pabari added that the Reserve Bank of India (RBI) is determined to prevent the rupee from falling below 83.70, despite pressures from oil companies due to high oil prices.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was down by 0.11 per cent at 104.93. Brent crude futures, the global oil benchmark, rose by 0.76 per cent to USD 85.73 per barrel.
On the domestic equity market front, the 30-share BSE Sensex increased by 105.32 points, or 0.13 per cent, to 80,030.09 points, while the broader NSE Nifty gained 21.60 points, or 0.09 per cent, reaching 24,346.05 points.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, purchasing shares worth Rs 583.96 crore, according to exchange data.
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