Rupee rises 7 paise to 83.24 against U.S. dollar in early trade

Rupee strengthens against the dollar due to lower crude oil prices, with potential for further appreciation.

The rupee appreciated by 7 paise to 83.24 against the U.S. dollar on Wednesday amid softening crude oil prices in the international market.

Forex traders said the local unit faced some resistance due to subdued sentiment in the domestic equity market and foreign fund outflows.

At the interbank foreign exchange market, the local unit opened at 83.29 and inched up further to trade at 83.24 against the greenback, registering a gain of 7 paise from its previous closing level.

On Tuesday, the rupee appreciated 6 paise to close at 83.31 against the U.S. dollar.

"As the rupee seems to have started aligning with its fundamentals, in the short term, one can expect the Rupee to approach levels of 83.00 to 83.10, while the medium-term target is projected to range between 82.80 to 82.50 levels," CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 104.63, lower by 0.02%.

Brent crude futures, the global oil benchmark, declined 0.65% to $82.34 per barrel.