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The rupee appreciated 4 paise to 82.33 against the US dollar in early trade on Wednesday tracking positive sentiments in the domestic equity market and a relatively weak dollar against major currencies.
At the interbank foreign exchange, the domestic unit opened strong at 82.32 against the US dollar and then recovered further to 82.30. It later slipped to 82.33 against the greenback, registering a gain of 4 paise over its previous close.
On Tuesday, the rupee had closed at 82.37 against the US dollar.
Anand James, chief market strategist, Geojit Financial Services, said further slippage till 82 levels could happen. “Sustainable trades above 82.36 will be required to rekindle the positivity.”
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.10% lower at 103.49.
Global oil benchmark Brent crude futures rose 1.21% to $78.39 a barrel.
BSE with 30 shares Sensex was trading at 403.21 points or 0.70% higher at 58,303.40 points while the broader NSE Nifty was up 130.40 points, or 0.77%, at 17,173.70 points.
Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday as they sold shares worth ₹3,086.96 crore, according to exchange data.
Expectations of a slower rate hike by the US Federal Reserve due to low inflation also boosted the overall sentiment.
In February, the US consumer price index came in at 6%, largely in line with expectations.
On the domestic front, wholesale price-based inflation eased to 3.85% in January due to moderation in prices of manufactured articles, fuel and electricity, though food articles remained costlier.