New Delhi: The Indian rupee edged up 3 paise to 94.78 against the US dollar in early trade on Friday, recovering slightly from its previous close even as elevated crude oil prices and foreign fund outflows continued to weigh on the currency.
At the interbank foreign exchange market, the rupee opened at 94.78 against the dollar, compared with Thursday's closing level of 94.81.
Forex market participants pointed to persistent macroeconomic pressures, with Brent crude trading above USD 113 per barrel and the US dollar maintaining strength against other major currencies.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said foreign investors were turning towards the dollar as a safe-haven asset amid elevated US Treasury yields.
The dollar index, which measures the greenback against a basket of six major currencies, was up 0.04% at 101.64.
Brent crude futures rose 0.42% to USD 113.65 per barrel, adding to concerns over India's import bill and the pressure on the domestic currency.
In the equity market, the BSE Sensex rose 343.48 points to 73,592.87, while the Nifty 50 gained 41.65 points to 22,729.30.
Foreign Institutional Investors (FIIs) sold equities worth Rs 3,458.70 crore on a net basis on Thursday, according to exchange data, adding to the pressure on domestic financial markets.
