Mumbai: The rupee pared initial losses to finally settle 4 paise higher at 83.48 against the US dollar on Friday, tracking a strong rebound in domestic equities.
Forex traders said the domestic currency fell in early trade on risk aversion in global markets amid geopolitical tensions in the Middle East.
However, the rupee recovered on reports of the RBI intervention to defend a sharp fall in the local unit, they added.
At the interbank foreign exchange market, the local unit opened at 83.58 against the greenback. The unit hit an intra-day high of 83.46 against the greenback.
The domestic unit finally settled at 83.48 against the dollar, 4 paise higher from its previous close.
On Thursday, the rupee rebounded from its all-time low level and closed 9 paise higher at 83.52 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08 per cent lower at 106.06.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 4,260.33 crore, according to exchange data.