The rupee appreciated 16 paise to 81.54 against the U.S. dollar in early trade on Friday on broad dollar weakness and in line with its Asian peers.
At the interbank foreign exchange, the domestic unit opened at 81.69 against the dollar, then gained ground to touch 81.54, registering a rise of 16 paise over its previous close.
On Thursday, the rupee appreciated by 23 paise to close at 81.70 against the U.S. dollar.
Forex traders said the American currency has retreated from its elevated levels post Federal Open Market Committee (FOMC) minutes.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.23% to 105.82. Moreover, steady crude oil price is also aiding investor sentiments.
“Brent is steady around $85 per barrel after Thursday’s drop which came on reports that the price caps proposed for Russian crude were too high and above the current levels,” IFA Global Research Academy said in a note.
Brent crude futures, the global oil benchmark, advanced 0.20% to $85.51 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 39.89 points or 0.06% lower at 62,232.79. Similarly, the broader NSE Nifty fell 12.65 points or 0.07% to 18,471.45.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday as they purchased shares worth ₹1,231.98 crore, according to exchange data.