In the final trading session of 2022, the rupee strengthened 14 paise to settle at 82.73 against the US dollar as the value of the American currency declined from its highs and investors' demand for riskier assets grew.
The local currency, however, finished the year with a loss of 844 paise or 11.36 percent, mostly due to a strong dollar relative to its key international counterparts.
The greenback climbed in the overseas market as the US Federal Reserve raised rates aggressively following surging inflation.
At the interbank foreign exchange market, the local unit opened at 82.77 and touched an intra-day high of 82.70 and a low of 82.82 against the greenback. It finally settled at 82.73, registering a rise of 14 paise over its previous close of 82.87.
On December 31, 2021, the rupee settled at 74.29 against the dollar.
On the domestic equity market front, the 30-share BSE Sensex declined 293.14 points or 0.48 per cent to end at 60,840.74, while the broader NSE Nifty fell 85.70 points or 0.47 per cent to 18,105.30.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.02 per cent to 103.85.
Global oil benchmark Brent crude futures fell 0.53 per cent to USD 83.02 per barrel.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 572.78 crore, according to exchange data.
With inputs from Agencies.
