Moreover, the strength of the American currency in the overseas market and elevated crude oil prices weighed on the local unit and restricted the upmove.
At the interbank foreign exchange market, the local unit opened at 83.56 and gained further to trade at 83.54 against the greenback in initial deals, registering an increase of 5 paise from its previous closing level.
On Tuesday, the rupee settled for the day lower by 9 paise at 83.59 against the US dollar.
"The
Pabari further said that falling fiscal deficits, stronger growth and reduced political uncertainties, with Narendra Modi's coalition government taking charge, have provided some support for the rupee.
"The Reserve Bank of India, armed with substantial reserves of USD 651 billion, stands ready to intervene to prevent significant rupee depreciation," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 per cent higher at 105.25.
Brent crude futures, the global oil benchmark, rose 0.41 per cent to USD 82.26 per barrel.
On the domestic equity market, the 30-share BSE Sensex was trading 269.20 points, or 0.35 per cent higher at 76,725.79 points. The broader NSE Nifty advanced 92.60 points or 0.4 per cent to 23,357.45 points in initial trade.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, selling shares worth Rs 111.04 crore, according to exchange data.
SEE ALSO:
Elon Musk hits out at Apple’s partnership with OpenAI, threatens to ban Apple devices
iOS 18 announced with Apple Intelligence, improved privacy controls, customisable home screen and more
Maruti Suzuki retakes the top-selling car spot – Top 10 selling cars in India in May 2024