Tracking the US currency’s overall weakness, the rupee closed higher by 11 paise at 81.57 (provisional) against the US dollar on Thursday.
However, muted trends in domestic equities and continued foreign fund outflows limited the rupee’s gains, traders said.
In the interbank foreign exchange market, the local unit opened stronger at 81.54, but lost ground against the greenback to quote an intraday low of 81.74.
It finally ended at 81.57 (provisional), up by 11 paise from the previous close.
The rupee settled at 81.68 against the US dollar on Wednesday.
The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.17 percent to 103.01.
Global oil benchmark Brent crude futures rose 0.92 percent to $83.44 a barrel.
On the domestic equity market front, the 30-share BSE Sensex ended down 147.47 points, or 0.25 percent, at 59,958.03, while the broader NSE Nifty settled 37.50 points, or 0.21 percent, at 17,858.20.
Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 3,208.15 crore, according to exchange data.
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