The rupee continued to trade in a close range, rising by 6 paise on Thursday as crude oil prices declined and the greenback went weaker. It closed at 87.63 (provisional) against the US dollar.
However, any further gains were capped by concerns over additional US tariffs on Indian products, which kicked in on Wednesday, and a decline in domestic equity markets, opined forex traders.
The total tariffs on Indian exports to the US are now at 50 per cent, exempting a few sectors.
At the interbank foreign exchange, the rupee opened at 87.56 against the greenback and traded in the range of 87.53-87.68 during the day.
It had depreciated 13 paise to close at 87.69 against the US dollar on Tuesday, while equity and forex markets remained closed on Wednesday on account of Ganesh Chaturthi.
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Brent crude, the global oil benchmark, was trading 0.72 per cent lower at USD 67.56 per barrel in futures trade.
"Brent oil prices fell in Asian trading on Thursday after US data showed a lower-than-expected drop in crude inventories, while investors weighed the impact of additional US tariffs against India," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.16 per cent to 98.07.
"The dollar index fell as US President Donald Trump's unprecedented move to fire FED Governor Lisa Cook renewed concerns over the Central Bank's independence," Bhansali added.
On the domestic equity market front, the Sensex tumbled 705.97 points to settle at 80,080.57, while the Nifty was down 211.15 points to 24,500.90.
Foreign Institutional Investors offloaded equities worth ₹6,516.49 crore on Tuesday, according to exchange data.
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