Early on Thursday, the rupee climbed against the US dollar by 21 paise to 81.97, as a surge in local stocks and declines in the value of the US currency abroad boosted investor confidence.
Additionally, positive macroeconomic data bolstered the local currency, according to FX dealers.
The local unit at the interbank foreign exchange began substantially higher against the dollar at 81.98 before gaining marginally to 81.97, recording a gain of 21 paise over its previous finish.
The native currency was trading in a narrow range of 81.95-81.99 when it first entered the market.
The rupee’s value versus the dollar had been fixed at 82.18 on Wednesday during the previous session.
Retail inflation reached a three-month high of 4.81 percent in June, mostly as a result of rising grain and pulse prices, although it still stayed within the Reserve Bank’s target range.
According to official statistics issued on Wednesday, India’s industrial output increased to 5.2% in May from 4.5% in April 2023, mostly as a result of strong performance by the manufacturing and mining sectors.
The dollar index, which measures how strong the dollar is relative to a basket of six other currencies, dropped 0.04 percent to 100.14.
The benchmark for world oil, Brent crude futures, increased 0.49 percent to USD 80.50 a barrel.
The 30-share BSE Sensex was up 337.05 points, or 0.52 percent, to 65,730.95 on the domestic equities market. The NSE Nifty index as a whole increased by 96.65 points, or 0.50 percent, to 19,480.95.
According to exchange statistics, foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday by selling shares worth Rs 1,242.44 crore.
