The rupee opened on a flat note against the US dollar on Thursday as softening crude oil prices in the global markets supported the local currency.
Traders said the domestic unit is trading in a narrow range as muted domestic equities and sustained foreign fund outflows capped the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 82.77 against the dollar, then gained ground to quote at 82.76, registering a rise of 4 paise over its previous close.
On Wednesday, the rupee gained 7 paise to close at 82.80 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.10 per cent to 104.35.
Brent crude futures, the global oil benchmark, declined 0.31 per cent to USD 83 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 346.35 points or 0.57 per cent lower at 60,563.93. The broader NSE Nifty fell 103.10 points or 0.57 per cent to 18,019.40.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth Rs 872.59 crore, according to exchange data.
"Rupee has been in the 82.40-82.91 range for 13 sessions now. It ended flat at 82.86 yesterday. There were dollar bids to fix on account of expiry yesterday but USD/INR eased post fix. USD/INR is likely to trade in a 82.65-82.95 range with sideways price action," IFA Global Research Academy said in a research note.
The report further noted that risk sentiment has been dampened on fears that China reopening could result in a rise in cases around the world. The US will require travellers from China to furnish a negative COVID report.
With inputs from Agencies.
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