The rupee rose 2 paise to 82.99 against the U.S. dollar in early trade on February 20, amid softening crude oil prices in the overseas market.
Forex traders said, however, a strong American currency, withdrawal of foreign funds and subdued equity market sentiment kept the local unit under pressure.
At the interbank foreign exchange, the domestic currency opened at 83.02 and inched up to 82.99 against the greenback in initial deals, registering a gain of 2 paise from its previous close.
On February 16, the rupee settled 4 paise higher at 83.01 against the U.S. dollar.
The currency derivatives market was closed on February 19 on account of Chhatrapati Shivaji Maharaj Jayanti.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.13% higher at 104.28.
Brent crude futures, the global oil benchmark, declined 0.13% to $83.45 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 164.66 points or 0.23% lower at 72,543.50 points. The broader NSE Nifty declined 44.45 points or 0.20% to 22,077.70 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on February 19 as they offloaded shares worth ₹754.59 crore, according to exchange data.