The rupee climbed to open at 82.78 on Thursday in early trades against a dollar after the previous close of 82.84 at the interbank foreign exchange market. The strengthening is attributed to a weak greenback in the foreign markets and early rises in domestic equity markets.
Markets opened in green with the 30-share BSE benchmark Sensex advancing 397.14 points to 61,464.38. The broader NSE Nifty climbed 119.65 points to 18,318.75.
However, the Indian currency gains were restricted by the firm crude oil prices and forex outflows from capital markets, a report from PTI stated.
The dollar index, which determines the greenback’s strength against a basket of six currencies, dropped 0.28 per cent to 103.87. Brent crude futures, the global oil benchmark, grew 0.45 per cent to USD 82.57 per barrel.
Rupee appreciated further to reach 82.73 before trading at 82.74 at 9:30 am, capturing a gain of 10 paise over the earlier close, the report added.
Rupee is said to depreciate when the purchasing power decreases. This means one needs to spend more rupees in order to purchase a dollar in INR to USD trade. The exchange rate is based on multiple factors, including rate of inflation, interest rates, economic and political scenario of the country.