In early trade on Thursday, the rupee strengthened 26 paise to 81.67 US cents against the US dollar after the latter depreciated from recent highs.
The local unit started out at 81.72 versus the dollar on the interbank foreign exchange but moved up to touch 81.67, gaining 26 paise from its previous finish.
Due to the widespread dollar weakening, the rupee has gained strength in international trade. IFA Global Research Academy stated in a research note that it is likely to trade in a range of 81.55-81.85 with sideways market movement.
Following the disappointing US statistics and dovish Fed minutes, the dollar index, which measures the strength of the dollar against a basket of six different currencies, dropped 0.41 percent to 105.63.
IFA Global Research Academy reported that while “different” Fed members envisioned rates peaking at higher levels, the minutes of the most recent Fed meeting showed that the majority of Fed members were in favour of decreasing the pace of rate hikes.
The benchmark for world oil, Brent crude futures, saw a 0.21% fall to USD 85.23 per barrel.
The 30-share BSE Sensex was trading 180.14 points, or 0.29 percent, higher at 61,690.72 on the domestic equity market. The larger NSE Nifty also increased, rising 66.50 points, or 0.36 percent, to 18,333.75.
According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs 789.86 crore on Wednesday, making them net sellers in the capital markets.
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