The rupee opened 6 paise higher at 71.27 against the US dollar on Thursday. Minutes later, the currency recovered further to 71.20.
In the previous session, the domestic unit snapped its three-day losing streak and settled 11 paise higher at 71.33 on increased selling of the American currency by exporters and banks.
Rupee continued to consolidate in a narrow range on Wednesday and volatility for the USD/INR pair has been low despite instability in global crude oil prices and the dollar against its major crosses, said Gaurang Somaiya
Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL).
Gains for the rupee remained restricted despite fall in global crude oil prices. Oil prices remained steady but traded with a slight negative bias as concerns over global growth and a sharp rise in US stocks kept the market under pressure.
"Today, USD/INR pair is expected to quote in the range of 70.70 and 71.50," Somaiya added.
On Wednesday, overseas investors (FIIs) were the net sellers in the capital markets to the tune of Rs 775.82 crore while domestic investors (DIIs) emerged as the net buyers to the tune of Rs 583.77 crore.
On the global front, Asian shares were subdued on Thursday as political uncertainty in the United States and worries about weakening global economic growth left investors wary of riskier assets.
Oil prices were steady. International Brent crude oil futures were at $61.17 a barrel at 6:54 am, up 3 cents from their last settlement, having closed down 0.6 per cent in the previous session. US West Texas Intermediate (WTI) crude futures were at $52.63 per barrel, up 3 cents from their last settlement, Reuters reported.