As crude oil prices decline, the rupee strengthens 12 paise to 82.08 against the US dollar.

Early on Friday, the rupee strengthened 12 paise to 82.08 against the US dollar, helped by falling crude oil prices and an uptick in domestic equities. Significant dollar demand from importers and significant outflows of foreign funds, according to forex traders, could weigh on the local currency and limit its tendency to appreciate.The domestic currency at the interbank foreign exchange started out at 82.15 against the dollar before moving up and touching 82.08, rising 12 paise from its previous close. The rupee also hit a low of 82.22 against the dollar in early trade.

The rupee lost 40 paise on Thursday, closing at a rate of 82 US cents. The dollar index, which measures the value of the dollar against a basket of six different currencies, increased 0.09 percent to 101.84. The benchmark for world oil, Brent crude futures, fell 0.10 percent to USD 82.09 a barrel. The 30-share BSE Sensex was trading 348.05 points, or 0.58 percent, higher at 60,280.29 on the domestic equity market. The NSE Nifty index as a whole increased by 51.05 points, or 0.29 percent, to 17,661.45.

According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs 3,065.35 crore on Thursday, making them net sellers in the capital market.

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