In early trade on Thursday amid significant volatility, the rupee lost 4 paise to Rs 81.66 against the US dollar as surging crude oil prices hurt the local currency. The rupee started off strongly against the dollar at the interbank foreign exchange, opening at Rs 81.52, before giving up its gains and dropping to Rs 81.66, falling 4 paise from its previous finish.
The rupee also reached Rs 81.51 versus the dollar during the first round of trading.
The rupee gained 20 paise on Tuesday, ending the day at Rs 81.62 against the US dollar.
Due to Dussehra, the FX market was closed on Wednesday.
The rupee began the day stronger, tracking a decline in the value of the dollar during the previous two sessions, according to Sriram Iyer, Senior Research Analyst at Reliance Securities. On Thursday morning, Asian and developing market peers were also firmer and provided assistance.
Iyer noted that the local unit was hurt by higher crude oil prices, hawkish comments from Fed officials, and JP Morgan’s decision to delay the inclusion of Indian bonds in its global index.
The dollar index, which measures the value of the dollar relative to a basket of six different currencies, decreased 0.35 percent to 110.81.
Brent crude futures, the benchmark for all crude oil, increased 0.13% to $93.49 per barrel.
The 30-share BSE Sensex was up 357.3 points, or 0.62%, to 58,422.77 on the domestic equities market, while the larger NSE Nifty gained 109.25 points, or 0.63 percent, to 17,383.55.
According to exchange data, foreign institutional investors bought shares worth Rs 1,344.63 crore on Tuesday, making them net purchasers on the capital market.