On Thursday, the Indian rupee experienced a modest depreciation against the dollar, CR Forex Advisors MD Amit Pabari said, adding that this shift was influenced by elevated oil prices, increased demand for dollars from importers, and the RBI's efforts to keep the rupee within a tight range.
"However, given the robust fundamentals and the ever-rising Indian stock markets, the bias for the rupee remains optimistic," he added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 104.24, marginally higher by 0.07 per cent.
Brent crude futures, the global oil benchmark, fell 0.41 per cent to $84.76 per barrel.
On the domestic equity market, the 30-share BSE Sensex was trading 103.9 points, or 0.13 per cent lower at 81,239.56 points.
The broader NSE Nifty was down 49.05 points, or 0.2 per cent, to 24,751.80 points.
Meanwhile, the Asian currencies were all down after a fall in European currencies as the European Central Bank (ECB) kept rates unchanged in its meeting with a possibility of cut in September, traders said.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday as they purchased shares worth Rs 5,483.63 crore, according to exchange data.