The rupee on Friday morning recovered from its all-time low levels and appreciated by 10 paise to 83.13 against the US dollar in early trade, tracking a positive trend in domestic equities.
Forex traders said the rupee is trading in a narrow range as firm crude oil prices and the strength of the American currency in the overseas market dented investor sentiments, while positive domestic equities cushioned the downside.
At the interbank foreign exchange, the domestic unit opened at 83.13, registering a rise of 10 paise over its last close.
On Thursday, the rupee depreciated 10 paise to its lifetime low of 83.23 against the US dollar.
Forex traders expect the rupee to trade with a negative bias on a strong dollar and elevated crude oil prices. Disappointing European data may further support the dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell marginally by 0.15 per cent to 104.89.
Oil prices fell on Friday amid worries of supply shortage post Saudi Arabia and Russia's extended voluntary supply cut in addition to fall in US crude inventories. Brent crude futures for November lost 33 cents at $89.59 per barrel and US West Texas Intermediate crude fell to $86.54 per barrel with a loss of 33 cents.
The markets on Friday morning opened higher with Sensex at 66,357.93, up by 92.37 points and Nifty was at 19,750.85 with a gain of 23.80 points. Nifty Midcap 100 was at record high in the morning session and crossed the 40,750 mark.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 758.55 crore, according to exchange data.
With inputs from Agencies.