The rupee appreciated 5 paise to 83.19 against the U.S. dollar in early trade on January 5, supported by positive domestic equities and foreign fund inflows.
However, forex traders said the Indian currency remained under pressure amid a strong American currency and rising crude oil prices.
At the interbank foreign exchange, the domestic currency opened at 83.23 and touched 83.19 against the greenback in initial trade, registering a rise of 5 paise from its previous close.
On January 4, the domestic currency settled at 83.24 against the dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.07% higher at 102.49.
The dollar was steady, heading for its strongest weekly performance on scaled-back expectations of steep and early rate cuts this year ahead of the closely watched U.S. payrolls data, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Global oil price benchmark Brent crude fell 0.37% to $77.88 per barrel.
As the Middle East disruptions remained, oil prices rose this morning after falling on Thursday due to a massive build-up in U.S. inventories in the final week of 2023. Brent oil was at $78 per barrel on January 5, Mr. Bhansali added.
In the domestic equity market, the 30-share BSE Sensex was trading 216.19 points or 0.30% higher at 72,063.76. The broader NSE Nifty advanced 67.50 points or 0.31% to 21,726.10.
Foreign institutional investors (FIIs) were net buyers in the equity market on January 4 as they purchased shares worth ₹1,513.41 crore, according to exchange data.
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