Mumbai: The rupee rose 4 paise to settle at 83.01 against the US dollar on Friday, amid positive sentiment in the domestic equity markets and softening crude oil prices.
Forex traders said a strong American currency and outflow of foreign funds, however, capped a sharp gain in the domestic currency.
At the interbank foreign exchange market, the local unit opened at 83.03 and touched the intraday high of 83.00 against the
greenback.
The local unit finally settled at 83.01 against the dollar, registering a gain of 4 paise from its previous close.
On Thursday, the rupee settled 3 paise lower at 83.05 against the US dollar.
According to Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, the Indian rupee appreciated on positive domestic markets.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.07 per cent higher at 104.36.
Government data released on Thursday showed the country’s exports increased 3.12 per cent on-year to $36.92 billion in January. Imports rose by about 3 per cent to $54.41 billion and the trade deficit stood at $17.49 billion.