In line with its regional counterparts and lower crude oil prices, the rupee strengthened by 15 paise to settle at 82.73 against the US dollar on Thursday.
Foreign capital withdrawals and a flat domestic stocks trend, according to forex traders, dampened investor morale and constrained the appreciating bias.
The local unit started out at 82.78 versus the dollar on the interbank foreign exchange market and ended up closing at 82.73, up 15 paise from its previous close of 82.88.
During the trading session, the rupee touched a high of 82.71 and a low of 82.79 against the dollar.
The dollar index, which measures how strong the dollar is relative to a basket of six different currencies, increased 0.02 percent to 104.61.
Benchmark brent crude futures for world oil increased by 0.34 percent to USD 80.87 per barrel.
According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs 579.82 crore on Wednesday, making them net sellers in the capital market.
With inputs from Agencies.
