However, subdued equity market sentiment and a slight recovery in crude oil prices put the local currency under pressure, according to forex traders.
At the interbank foreign exchange, the domestic unit opened at 85.48 and slipped to 85.54 against the greenback in early deals, trading 10 paise higher from its previous closing level.
The rupee closed Wednesday’s (April 16’s) session with a gain of 16 paise at 85.64 against the dollar.
The Indian currency strengthened by 104 paise in the preceding three sessions since the level of 86.68 against the greenback, its closing mark recorded on April 9.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally higher by 0.14% at 99.28.
Brent crude, the global oil benchmark, rose 0.96% to $66.48 per barrel in futures trade.
Foreign institutional investors (FIIs) bought equities worth ₹3,936.42 crore on a net basis on Wednesday (April 17), according to exchange data.
