In early trade, the rupee trades in a narrow range against the US dollar

Early transactions using the rupee at the interbank foreign exchange showed range-bound activity. 

Digital Desk: The rupee was trading in a narrow range against the US dollar in early trade on Thursday, despite a rally in the equity markets.

The rupee traded range-bound on the interbank foreign exchange in early deals. It opened at 79.22 against the US dollar, then fell to 79.31, a 6 paise drop from the previous close.

In the morning, it was trading in a narrow range of 79.22-79.31.

The rupee gained 38 paise against the US dollar on Wednesday, closing at 79.25.

The dollar index rose 0.16 percent to 105.36 after official data showed that US inflation fell from a 40-year high in June to 8.5 percent in July due to lower gasoline prices.

In the meantime, global oil benchmark Brent crude futures rose 0.12% to $97.28 per barrel.

Forex traders predict that the rupee will trade on a mixed note. Domestic market recovery from low levels, as well as FII inflows, may support the local currency.

The 30-share Sensex was trading 582.67 points, or 0.99 percent, higher at 59,399.96 points, while the broader NSE Nifty was up 159.80 points, or 0.91 percent, at 17,694.55.

According to exchange data, foreign institutional investors continued to be net buyers in the capital market on Wednesday, purchasing shares worth Rs 1,061.88 crore.