The rupee opened 23 paise higher against the US dollar at 71.43 on Thursday amid strong Asian equities and rise in global crude oil prices. However, the currency slipped and was trading down 30 paise or 0.42 percent.
The rupee recovered from initial losses to settle higher by 5 paise at 71.66 against the US currency on Wednesday, extending gains for a fifth straight session on the back of firm domestic equities and Asian currencies like the Chinese yuan.
Forex traders said the uptick in domestic stocks enthused investors, following which the domestic unit gained strength and recovered from early losses.
Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 188.08 crore on Monday, according to provisional exchange data.
Asian stocks rose on Thursday on hopes for a thaw in US-China trade frictions and expectations that the European Central Bank will kick off another wave of monetary easing by global central banks.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent and Japan's Nikkei stock index rose 1 percent. Australian shares were up 0.41 percent, Reuters reported.
Source: moneycontrol.com