Rupee gains 11 paise to 82.77 against US dollar

Mumbai: The rupee gained 11 paise to 82.77 against the US dollar in early trade on Thursday as the American currency retreated from its elevated levels.

At the interbank foreign exchange, the domestic unit opened at 82.78 against the dollar and marginally rose to 82.77, registering a rise of 11 paise over its previous close.

On Wednesday, the rupee closed at 82.88 against the US currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.23 per cent to 104.34.

Brent crude futures, the global oil benchmark, advanced 0.48 per cent to USD 80.99 per barrel.

"US Federal Reserve officials in their most recent Federal Open Market Committee (FOMC) meeting on February 1 indicated that there are signs inflation is coming down but not enough to counter the need for more interest rate hikes," Mitul Shah, Head of Research – Institutional Desk at Reliance Securities, said.

In the domestic equity market, the 30-share BSE Sensex fell 166.23 points or 0.28 per cent to 59,578.75 points. The broader NSE Nifty declined 58.40 points or 0.33 per cent to 17,495.90 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 579.82 crore, according to exchange data.