Mumbai: The rupee gained 13 paise to 81.82 against the US dollar in early trade on Thursday, boosted by foreign fund inflows.
At the interbank foreign exchange, the domestic unit opened at 81.93 against the dollar, then climbed to 81.82, registering a rise of 13 paise over its previous close.
On Wednesday, the rupee closed at 81.95 against the US currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 105.63.
Overall, higher US bond yields and risk-off-tilted equity sentiment are making a base case for the stronger USD, CR Forex Advisors MD Amit Pabari said, adding that FDI and FPIs have acted as life support for the rupee.
"In March, they (FPIs) are net investors with more than Rs 10,000 crore in equities... we could see rupee trading in the range of 81.50 to 82.50 over the short-term," Pabari said.
Foreign Institutional Investors (FIIs) were net buyers in the capital market on Wednesday as they purchased shares worth Rs 3,671.56 crore, according to exchange data.
Brent crude futures, the global oil benchmark, advanced 0.02 per cent to USD 82.66 per barrel on Thursday.
In the domestic equity market on Thursday, the 30-share BSE Sensex fell 131.61 points or 0.22 per cent to 60,216.48 points. The broader NSE Nifty declined 33.30 points or 0.19 per cent to 17,721.10 points.
