On Wednesday, the rupee had closed at 73.50 against the US dollar.
The Indian rupee rose 5 paise to 73.45 against the US dollar in early trade on Thursday tracking a firming trend in domestic equities.
Forex traders said broader weakness in the US currency in the overseas market and sustained foreign fund inflows supported the local unit, while higher crude oil prices limited gains.
At the interbank foreign exchange, the rupee opened at 73.51 against the dollar, then advanced 5 paise to 73.45 over its previous close.
On Wednesday, the rupee had closed at 73.50 against the US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.01% to 93.11.
Foreign institutional investors were net buyers in the capital markets on Wednesday as they bought shares worth Rs 232.84 crore, according to exchange data.
On the domestic equity market front, the BSE Sensex was trading 146.4 points or 0.25% higher at 58,869.60, while the broader NSE Nifty was trading 40.85 points or 0.23% higher at 17,560.30.
Meanwhile, global oil benchmark Brent crude futures rose 0.26% to $75.66 per barrel.
On the domestic macro-economic front, the Union Cabinet on Wednesday approved a big-bang relief package for the stressed telecom sector, including a four-year break for companies from paying statutory dues, allowing sharing of scarce airwaves, changes in definition. Is. Revenue on which levy is paid and 100% foreign investment through automatic route.
The Union Cabinet also approved a revised Rs 25,938 crore Production Linked Incentive (PLI) scheme for auto and auto-component industries to enhance domestic manufacturing capabilities.
According to experts, these announcements may increase fund inflows and may strengthen the rupee.
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