Rupee rises 9 paise to 82.99 against US dollar

Mumbai: The rupee recovered from its all-time low levels and appreciated by 9 paise to 82.99 against the US dollar in early trade on Thursday as crude oil price retracted from its elevated levels.

However, a muted trend in domestic equities and strength of the American currency in the overseas market dented investor sentiments, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 83.10, then touched a high of 82.99 against the American currency, registering a rise of 9 paise over its last close.

On Monday, the rupee depreciated 26 paise to settle at an all-time low of 83.08 against the US dollar.

Forex market was closed on Tuesday and Wednesday on account of Independence Day and Parsi New Year, respectively.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.12 per cent to 103.55.

"The dollar index rose above 103 levels following safe haven buying on the back of rising uncertainty and after hawkish FOMC meeting minutes that showed officials were keen on raising rates further as inflation persists.

"Today, focus will be on the Philadelphia Fed manufacturing index number from the US. We expect the USDINR(Spot) to trade sideways and quote in the range of 83.05 and 83.50," said Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial services.

Brent crude futures, the global oil benchmark, rose 0.12 per cent to USD 83.55 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 120.71 points or 0.18 per cent lower at 65,418.71. The broader NSE Nifty declined 43.55 points or 0.22 per cent to 19,421.45.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they purchased shares worth Rs 722.76 crore, according to exchange data.