The rupee maintained its gaining momentum for the third straight day and appreciated by 2 paise to 83.30 against the US dollar in early trade on Thursday, tracking positive cues from equity markets and sustained foreign fund inflow.
Forex traders said, crude oil prices hovering above #82 per barrel ahead of the crucial meeting of oil producing countries OPEC+ however capped the sharp gain in the Indian currency.
Investors are also awaiting domestic GDP data to be released later in the day, they said.
At the interbank foreign exchange, the rupee opened at 83.31 against the dollar and traded in the range of 83.29 to 83.32. It later traded at 83.30 against the greenback, registering a gain of 2 paise over its previous close.
The rupee rose 2 paise to close at 83.32 against the US dollar on Wednesday, following a gain of 6 paise on Tuesday.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.02 per cent at 102.78.
Global oil benchmark Brent crude futures declined 0.18 per cent to $82.95 per barrel.
On the domestic equity market front, the BSE Sensex was trading 41.15 points or 0.06 per cent higher at 66,943.06, while the broader NSE Nifty rose 17.15 points or 0.09 per cent to 20,113.75. Both the indices surged more than 1 per cent on Wednesday.
Foreign institutional investors were net buyers in the capital market on Wednesday as they purchased shares worth ₹71.91 crore, according to exchange data.