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The rupee appreciated by 16 paise to 81.54 against the US dollar in early trade on Friday tracking widespread 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 recovered to 81.54, registering a rise of 16 paise from its previous close.
Read also: Rupee gains 30 paise to close at 81.63 against US dollar
On Thursday, the rupee strengthened by 23 paise to close at 81.70 against the US dollar.
Forex traders said the US currency retreated from its higher levels after the 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. Besides this, the stable crude oil price is also weighing on the investor sentiments.
“Brent held steady around $85 a barrel after Thursday’s decline, which suggested the proposed price cap for Russian crude was too high and above current levels,” the IFA Global Research Academy said in a note.
Global oil benchmark Brent crude futures rose 0.20% to $85.51 a barrel.
In the domestic equity market, the 30-share BSE Sensex was trading at 62,232.79, down 39.89 points or 0.06%. 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 market on Thursday as they bought shares worth Rs 1,231.98 crore, according to exchange data.