MUMBAI: The rupee gained 22 paise to 82.36 against the US dollar in early trade on Wednesday amid a positive trend in domestic equities.
Forex traders said sustained foreign fund outflows weighed on the local unit and restricted the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 82.48 against the dollar, then gained ground and rose to 82.36, registering a rise of 22 paise over its previous close.
On Tuesday, the rupee closed at 82.58 against the US currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 104.84.
Brent crude futures, the global oil benchmark, advanced 1.75 per cent to USD 83.89 per barrel.
In the domestic equity market, the 30-share BSE Sensex rose 202.36 points or 0.34 per cent to 59,164.48 points.
The broader NSE Nifty advanced 60.80 points or 0.35 per cent to 17,364.75 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 4,559.21 crore, according to exchange data.
On the domestic macroeconomic front, India's economic growth decelerated to 4.4 per cent in October-December this fiscal year mainly due to a contraction in the manufacturing sector.
The GDP (Gross Domestic Product) growth was 11.2 per cent in October-December 2021 and 6.3 per cent in July-September 2022, showed the data released by the National Statistical Office (NSO) on Tuesday.