Rupee rises by 5 paise to 82.80 against US dollar ahead of MPC announcement

The rupee appreciated by 5 paise to 82.80 against the US dollar in early trade on Thursday ahead of the Reserve Bank of India's monetary policy decision.

However, weak domestic equities and elevated crude prices weighed on the local unit, said analysts.

Investors were trading cautiously ahead of the Reserve Bank's rate-setting panel MPC's monetary policy decision. The MPC meeting started its three-day review meeting on Tuesday.

At the interbank foreign exchange, the domestic unit opened stronger at 82.81 against the dollar and touched 82.80, registering a gain of 5 paise over its previous close.

On Wednesday, the rupee appreciated 6 paise to settle at 82.85 against the dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.02 per cent to 102.47.

Global oil benchmark Brent crude was trading 0.14 per cent lower at USD 87.43 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 211.55 points or 0.32 per cent lower at 65,784.26. The broader NSE Nifty declined 50.95 points or 0.26 per cent to 19,581.60.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they purchased shares worth Rs 644.11 crore, according to exchange data.