Mumbai, Aug 30 (PTI) The rupee rebounded by 17 paise to settle at 82.63 against the US currency on Wednesday following weakness in the US dollar in global markets on easing concerns over interest rate hikes.

FII inflows into the capital market and firm equity markets supported the local unit while gains in crude oil prices restricted the rupee upside, according to analysts.

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At the interbank foreign exchange, the domestic unit opened higher at 82.67 amid overnight losses in the US dollar against major global rivals. It moved between a high of 82.63 and a low of 82.81 in intra-day trade.

The rupee finally closed at the day's high of 82.63 against the dollar, a gain of 17 paise compared to the closing level of 82.80 on Tuesday.

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Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 per cent lower at 103.50 after US data suggested that labour market was cooling, a scenario that could provide support for the US Federal Reserve in eventual easing interest rates.

"Rupee opened on a flat note and consolidated in a narrow range ahead of a number of economic data releases from the US. Data showed private payroll numbers rose by less than expected in August, in the latest sign of a slowdown in the US labour market,” Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services said.

Focus now shifts to prelim GDP number from the US and weaker-than-expected data could further weigh on the dollar.

“We expect the USDINR (Spot) to trade sideways and quote in the range of 82.40 and 82.80,” Somaiya said.

Brent crude futures, the global oil benchmark, rose 0.56 per cent to USD 85.97 per barrel.

On the domestic equity market front, the BSE Sensex closed higher by 11.43 points or 0.02 per cent at 65,087.25 points while the broader Nifty advanced by 4.80 points to close at 19,347.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth around Rs 61 crore, according to exchange data. PTI

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)