The rupee was trading in a limited range versus the US dollar in early trade on Thursday, mirroring a sluggish trend in local stocks despite dismal domestic macroeconomic data.

The rupee began at 82.30 against the US dollar, then appreciated to 82.29, a 4-paise gain over the previous close at the interbank foreign exchange.

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In the morning trade, it was trading in a narrow range of 82.25 to 82.34. The rupee slipped 12 paise to settle at 82.33 versus the greenback on Wednesday.

“The rupee started with small gains ahead of US CPI data that could aid investors to evaluate the size of rate hikes that the Fed is likely to deliver this year,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

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“A fall in the crude prices could aid sentiments, but most Asian and emerging market peers were weaker this Thursday morning as the FOMC minutes revealed that the Fed will continue its aggressive monetary policy stance and will cap gains for the local unit,” Iyer added.

Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, declined 0.2% to 113.29. The international oil benchmark, Brent crude futures, increased 0.01% to USD 92.46 a barrel.

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In the domestic equity market,  the Sensex was down 380.53 points, or 0.66%, at 57,245.38. The Nifty fell 108.25 points, or 0.63%, to 17,015.35.

Foreign institutional investors (FIIs) have sold shares worth a net of Rs 542.36 crore, whereas domestic institutional investors (DIIs) purchased shares worth a net of Rs 85.32 crore on October 12, as per provisional data available on the NSE.

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Domestically, increased food prices led retail inflation to a five-month high of 7.4%, while India’s industrial production fell to an 18-month low, dropping by 0.8% in August, owing mostly to a drop in output from the manufacturing and mining sectors.