Representative image of Indian rupees.
Credit: Pixabay Photo
Mumbai: The rupee appreciated 4 paise to 83.28 against the US dollar in early trade on Wednesday, supported by easing crude oil prices.
However, forex traders said the Indian currency remained under pressure amid a negative trend in domestic equities.
At the interbank foreign exchange, the domestic currency opened at 83.30 and touched 83.28 against the greenback in initial trade, registering a rise of 4 paise from its previous close.
On Tuesday, the domestic currency settled at 83.32 against the dollar.
"Brent oil prices fell to $75.88 per barrel as economic headwinds from interest rate jitters unravelled gains from worries on Houthi attacks in Red Sea oil movement. In the US, Dow Jones rose by 25 points while NASDAQ and S&P 500 fell as economic jitters continue to hit the markets," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
The rupee is expected to trade in a range of 83.15 to 83.40 during the day, Bhansali added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent lower at 102.08.
Global oil price benchmark Brent crude fell 0.03 per cent to $75.87 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 350.43 points or 0.49 per cent lower at 71,542.05. The broader NSE Nifty fell 87.10 points or 0.4 per cent to 21,578.70.
Foreign institutional investors (FIIs) were net buyers in the equity market on Tuesday as they purchased shares worth Rs 1,602.16 crore, according to exchange data.