Mumbai: The rupee advanced 32 paise to 75.89 against the US dollar in the opening trade Thursday, supported by positive domestic equities, broad dollar weakness and softening crude oil prices.
At the interbank foreign exchange, the rupee opened at 75.96 against the US dollar and gained momentum to quote 75.89, a gain of 32 paise from the previous close.
On Wednesday, the rupee spurted by 41 paise to close at a nearly two-week high of 76.21 against the American currency.
The Indian rupee opened higher tracking overnight weakness in the greenback and crude oil, Reliance Securities said in a research note.
“Risk assets rose, and the dollar declined despite the Federal Reserve signalling an aggressive monetary tightening cycle and could also lend support to the rupee,” it added.
The US Federal Reserve raised interest rates by 25 bps and signalled six more rate hikes this year.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.24 per cent to 98.38.
Global oil benchmark Brent crude futures rose 1.75 per cent to USD 99.74 per barrel.
On the domestic equity market front, the Sensex was trading 999.94 points or 1.76 per cent higher at 57,816.59, while the broader NSE Nifty rose 277.75 points, or 1.64 per cent, to 17,253.10.
Foreign institutional investors emerged as net buyers in the capital market Wednesday as they purchased shares worth Rs 311.99 crore, as per stock exchange data.