The rupee on Thursday closed 5 paise higher at 78.98 (provisional) against the US dollar from its all-time low.
In the interbank forex market, the local unit opened higher at 78.92 against the greenback and saw intra-day highs of 78.90 and low of 78.99.
It finally closed at 78.98, which is 5 paise higher than its previous closing price.
The rupee broke the psychologically important $79 a dollar level for the first time on Wednesday and has hit a lifetime low this month.
“The near-term outlook for the rupee remains bearish amid foreign fund outflows and risk aversion mood. Spot USD-INR is getting support at 78.38 and resistance at 79.10.
“Looking at the price action of the past few days, we could see profit booking in the pair before moving towards 79.10,” said Dilip Parmar, Research Analyst, HDFC Securities.
On the domestic equity market front, the BSE Sensex ended 8.03 points or 0.02% lower at 53,018.94, while the broader NSE Nifty ended 18.85 points or 0.12% lower at 15,780.25.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.06% at 105.16.
Global oil benchmark Brent crude futures fell 0.17% to $116.06 a barrel.
Foreign institutional investors remained net sellers in the capital markets on Wednesday as they sold shares worth 851.06 crore, according to exchange data.