In Mumbai's early trading session on Thursday, the rupee strengthened by 8 paise, reaching a rate of 83.26 against the US dollar. This appreciation can be attributed to a relatively weaker US currency in global markets and favourable movements in India's domestic stock exchanges.

Foreign Institutional Investors (FIIs) significantly contributed to this upward movement by engaging in substantial equity purchases, as observed by forex analysts. However, the rupee's ascent was somewhat tempered by the ongoing volatility in global crude oil prices.

Starting the day at 83.33 against the dollar in interbank foreign exchange, the rupee continued its positive momentum from the previous close of 83.34. Concurrently, the dollar index, reflecting the dollar's performance against a basket of six leading currencies, experienced a decline of 0.17 per cent, standing at 100.48.

On the commodities front, the global benchmark for oil prices, Brent crude, exhibited a marginal increase of 0.08 per cent, reaching $79.71 per barrel. Domestically, India's benchmark indices also displayed positive trends, with the 30-share BSE Sensex gaining 221.43 points, or 0.31 per cent, to touch 72,259.86. Similarly, the NSE Nifty saw an uptick of 50.80 points, or 0.23 per cent, settling at 21,705.55.

Furthermore, data from exchanges indicated that FIIs infused Rs 2,926.05 crore into the equity markets on Wednesday, reinforcing the positive sentiment in the financial landscape.

(With Reuters inputs)