The rupee rose 67 paise to 82.14 versus the US dollar in opening trade on Thursday, as the greenback fell from its peak levels.
The domestic unit began at 82.15 versus the dollar on the interbank foreign exchange, then gained ground to quote at 82.14, a 67-paise increase from its previous finish.
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The rupee gained 7 paise versus the dollar in the prior session on Tuesday, closing at 82.81.
Due to Diwali Balipratipada, the Foreign exchange market was closed on Wednesday.
The rupee opened stronger after the dollar index fell to below 110 levels, said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
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“The probable reason for this fall is slower rate hikes from the US in November-22 despite inflation being higher,” Bhansali said.
The dollar index, which measures the strength of the US currency against a basket of six currencies, increased by 0.06% to 109.76.
“The rise in oil prices from USD 90 per barrel to USD 94 per barrel would cap the rise in the rupee as oil is a major import for the country. Oil companies and importers will use this opportunity to buy dollars at a cheaper rate,” Bhansali said.
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The international oil benchmark, Brent crude futures, rose 0.26% to USD 95.94 a barrel.
“The range for the day is expected to be 81.80 to 82.40 as most Asian currencies have also risen from their recent lows,” Bhansali said.
The Sensex was up 371.83 points, or 0.62%, to 59,915.79 in the domestic stock market. Similarly, the Nifty gained 113.40 points, or 0.64%, to 17,769.75.
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Foreign institutional investors (FIIs) have sold shares worth a net of Rs 247.01 crore, whereas domestic institutional investors (DIIs) bought shares worth a net of Rs 872.88 crore on October 25, as per data available on the NSE.
