In early trade on Friday, the rupee rose 7 paise to 79.92 against the US dollar, as a firm trend in domestic equities and fresh foreign fund inflows boosted investor sentiment.
However, forex traders said that a strong greenback in overseas markets limited the local currency’s gains.
The rupee opened at 79.95 against the US dollar on the interbank foreign exchange, then gained strength to trade at 79.92 in early deals, a 7-paise gain over the previous close.
The rupee had hit an all-time low of 79.99 against the US dollar in the previous session. In the morning trade, the local currency was trading between 79.95 and 79.88.
The 30-share Sensex was trading 282.93 points, or 0.53 percent, higher at 53,699.08, while the broader NSE Nifty was up 82.95 points, or 0.52 percent, at 16,021.60.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, rose 0.03 percent to 108.57.
Meanwhile, wholesale price-based inflation fell to a three-month low of 15.18 percent in June, thanks to a sharp drop in mineral prices, but food items remained expensive. June marks the 15th consecutive month of double-digit wholesale inflation.
It reached a record high of 15.88% in May of this year. It was 12.07 percent in June 2021.
India’s current account deficit is expected to deteriorate in the current fiscal year on account of costlier imports and tepid merchandise exports, a finance ministry report said on Thursday.