Mumbai, Jun 28 : The rupee strengthened by 8 paise to 83.37 against the US dollar in early trade on Friday, buoyed by positive movements in domestic equities and inflows from foreign funds.

Forex analysts noted that while the American currency showed strength internationally and elevated crude oil prices posed challenges, the rupee managed to gain ground. Opening at 83.42 at the interbank foreign exchange market, it improved further to trade at 83.37 against the dollar in initial deals, marking an increase of 8 paise from its previous close.

On Thursday, the rupee had appreciated by 12 paise to settle at 83.45 against the US dollar.

Meanwhile, the dollar index, which measures the greenback’s performance against a basket of six major currencies, was up by 0.15 per cent at 106.06 ahead of crucial US inflation data due later in the day.

Brent crude futures, the global benchmark for oil prices, traded 0.47 per cent higher at USD 86.80 per barrel amid concerns over supply disruptions from Russia and the Middle East despite slowing demand.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, highlighted substantial inflows on Thursday that supported the rupee’s upward movement from the previous day’s close.

“Inflows are expected to continue on Friday, especially with month-end and quarter-end dynamics, potentially pushing the rupee higher towards 83.35. Exporters may hold back on selling while importers could take advantage of any dips,” Bhansali commented.

In the equity markets, the 30-share BSE Sensex rose 347.48 points or 0.44 per cent to 79,590.66 points, while the broader NSE Nifty climbed 114.55 points or 0.47 per cent to 24,159.05 points.

Foreign Institutional Investors (FIIs) remained net buyers in the capital markets on Thursday, purchasing shares worth Rs 7,658.77 crore, according to exchange data.