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The rupee strengthened by 10 paise to close at 82.28 (provisional) against the US dollar on December 9 tracking the weakening of the American currency in the overseas market.
Forex traders said outflow of domestic equities and foreign funds weighed on investor sentiment and limited gains.
At the interbank forex market, the local unit opened at 82.30 and touched an intra-day high of 82.08 and a low of 82.33 against the greenback.
It finally closed at 82.28, up 10 paise from its previous close of 82.38.
Forex traders said investors awaited the outcome of several central bank meetings next week for additional clues on the pace of rate hikes.
Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services said, “Focus is now shifting to FOMC policy statement. The central bank may hike rates by 50 bps and maintain a less accommodative stance.”
“We expect USD-INR (Spot) to trade sideways & quote in the range of 82.20 & 82.80,” said Somaiya.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.06% to 104.71.
Global oil benchmark Brent crude futures rose 1.22% to $77.08 a barrel.
On the domestic equity market front, the 30-share BSE Sensex declined 389.01 points, or 0.62%, to close at 62,181.67, while the broader NSE Nifty declined 112.75 points, or 0.61%, to 18,496.60.
Foreign institutional investors (FIIs) remained net sellers in the capital market on Thursday as they sold shares worth ₹1,131.67 crore, according to exchange data.