The rupee appreciated 19 paise to 87.03 against the US dollar in early trade on Thursday, buoyed by a favourable macroeconomic data that also led to a buying rush in domestic equity markets.
According to forex analysts, escalated tariff tensions worldwide continued to fuel the foreign capital outflow, but a weaker American currency index and lower level of crude oil prices added strength to the local unit.
At the interbank foreign exchange, the rupee opened stronger at 87.13 and touched a high of 87.03 against the greenback in early deals, registering a sharp gain of 19 paise from its previous closing level.
The rupee settled 1 paisa lower at 87.22 against the US dollar on Wednesday, a day after logging a recovery of 10 paise on Tuesday as it pared the steep loss of 36 paise in the preceding session (Monday).
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.01 per cent at 103.57.
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