Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.25 per cent to 103.61
Foreign currency assets declined by $302 mn to $498.19 bn in week ended Dec 30
The domestic currency finally settled at 82.71, down 9 paise over its previous close of 82.62
RBI may mop up any inflows to boost its foreign-exchange reserves, a move that may also work against the rupee
Forex traders said sustained foreign fund outflows and strength of the American currency in the overseas market weighed on investor sentiments and restricted the appreciation bias
Currency could be poised to gain after recent sharp underperformance, say analysts
The rupee gained 32 paise to close at 82.50 (provisional) against the US dollar on Thursday, supported by a weaker greenback overseas.
Forex traders said sustained foreign fund outflows weighed on investor sentiments and restricted the appreciation bias
The benchmark yield had dipped earlier in the day, as a fall in oil prices and U.S. yields supported buying sentiment for bonds
On Tuesday, the rupee had slumped 22 paise to close at its all-time low of 83 against the dollar
The local currency on the interbank order matching system fell to 82.9950, prompting state-run banks to sell dollars, likely on behalf of the RBI
The rupee appreciated 9 paise to 82.69 against the US dollar in early trade, as crude oil price retreated from its elevated levels
On the last trading day of 2022, the rupee had settled at 82.61
Rupee was trading higher against the US dollar, helped by likely position building and lack of cash dollar demand
Renewed overseas flows to provide support
RBI's intervention caused foreign reserves to decline by $70 billion in 2022, lowest in at least 22 years; worst show by bonds since 2009 on sustained repo rate hike
The rupee finished the year at 82.72 to the US currency, down from 74.33 at the end of 2021, while the dollar index was headed for its biggest yearly gain since 2015
India's current account deficit widened to a more than nine-year high in the July-September quarter on the back of high commodity prices, which pushed up the trade deficit, data from RBI showed
Forex traders said sustained foreign fund outflows weighed on investor sentiments and restricted the appreciation bias
The rupee was at 82.78 per dollar by 10:05 a.m. IST, having firmed up to 82.75. The currency closed at 82.8575 on Wednesday