Falling crude oil prices provided support to the Indian currency, though it was partially weighed down by foreign fund outflows, according to forex traders. At the interbank foreign exchange market, the rupee opened at 83.

Rupee strengthens against dollar on lower oil prices, foreign fund inflows, despite greenback's gains and Fed rate cut.

The Indian rupee strengthened against the US dollar in early trade on Thursday, driven by positive investor sentiment following the US Fed's interest rate cut and lower crude oil prices.

Forex traders noted that the rupee gained support from lower crude oil prices, positive domestic equity markets, and an inflow of foreign funds. However, they added that the strengthening U.S. dollar limited further gains for the local currency.

At the interbank foreign exchange market, the local unit opened at 83.89 and witnessed an intraday high of 83.87 and a low of 83.90 against the American currency

The rupee strengthened by 10 paise to hit its two-month high level of 83.66 against the US dollar on Thursday after the US Federal Reserve cut the benchmark interest rate by 0.50 per cent, boosting investors' sentiment.

At the interbank foreign exchange market, the Indian currency opened at 83.70 and inched up to 83.69 before trading at 83.70 against the greenback, registering a gain of 6 paise from its previous closing level.