Mumbai, February 25 The rupee gained 6 paise to 90.89 against the US dollar in early trading on Wednesday, supported by a weaker dollar and a strong opening in the domestic equity markets.
However, a sharp rise in global crude oil prices and outflows from foreign institutional investors prevented a significant increase in the local currency, forex traders said.
At the interbank foreign exchange market, the rupee opened at 90.94 against the dollar before rising to 90.89, registering a gain of 6 paise from its previous close.
The rupee traded in a narrow range on Tuesday and closed 6 paise lower at 90.95 against the US dollar.
"Dollar buying continued on Tuesday as the rupee ended at 90.95 with hardly any movement for the entire day. The range for the day could be around 90.75-91.25, with buyers stepping in to buy dollars," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which measures the strength of the dollar against a basket of six currencies, was trading 0.07 per cent lower at 97.77.
Brent crude, the global oil benchmark, rose by 1.37 per cent to USD 71.74 per barrel in futures trading.
The domestic equity markets rebounded, with the Sensex jumping 558.79 points to 82,784.71, and the Nifty climbing 157.05 points to 25,581.70.
On Tuesday, foreign institutional investors offloaded equities worth Rs 102.53 crore, according to exchange data.
