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The Indian rupee appreciated five paise to 77.52 against the US dollar (21.12 versus the UAE dirham) in the opening trade on Wednesday as a firm trend in the Indian equities boosted investor sentiments.
However, surging global crude prices and unabated foreign capital outflows capped the appreciation bias in the local unit, forex traders said.
At the Indian interbank foreign exchange, the rupee opened at 77.54 against the American dollar, then gained some more ground to quote 77.52, registering a rise of five paise over the previous close.
It was moving in a close range of 77.54 to 77.51 in early deals. In the previous session, the rupee settled at 77.57 against the American currency.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06 per cent higher at 101.92.
On the Indian equity market front, the 30-share Sensex was trading 242.62 points or 0.45 per cent higher at 54,295.23 points while the broader NSE Nifty climbed 68.85 points or 0.43 per cent to 16,194 points.
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(with inputs from PTI)
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