The rupee appreciated 9 paise to 82.73 against the US dollar in early trade on Thursday, supported by easing crude oil prices and a firm trend in domestic equities.
Forex traders said sustained foreign fund outflows weighed on investor sentiments and restricted the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 82.75 against the dollar, then gained ground to touch 82.73, registering a rise of 9 paise over its previous close.
Also read: Positive bias seen for Nifty, Sensex at open
On Wednesday, the rupee recovered from its all-time low level and settled at 82.82 against the dollar.
Meanwhile, the dollar index fell 0.04 per cent to 104.21.
Brent crude futures rose 0.99 per cent to $78.61 per barrel.
Despite the greenback's weakness elsewhere, the rupee did not strengthen on dollar persistent bids throughout the session. The local unit has been extremely range bound of late, IFA Global Research Academy said in a research note.
"We expect the rupee to trade in a 82.60-82.90 range with sideways price action," it added.
BSE Sensex was trading 162.86 points or 0.27 per cent higher at 60,820.31. NSE Nifty rose 60.20 points or 0.33 per cent to 18,103.15.
Also read: Stocks that will see action on January 5, 2023
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth ₹2,620.89 crore, according to exchange data.
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