Rupee increased by 2 paise to 83.49 against the US dollar in early trading. This appreciation was supported by a positive trend in domestic equities, although elevated crude oil prices dampened investor sentiment.

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At the interbank foreign exchange market, the rupee began trading at 83.49, marking a 2 paise increase from its last closing rate. On Wednesday, the rupee traded within a stable range and closed marginally lower at 83.51 against the US dollar.

"Persistent demand for the dollar from local importers has capped the rupee's potential gains, yet its outlook remains optimistic, buoyed by recent positive economic indicators," CR Forex Advisors MD-Amit Pabari said.

Pabari further said the rupee's outlook is supported by strong foreign inflows, a positive economic forecast, and India's impressive macroeconomic growth, currently the fastest among large economies.

On Wednesday, the rupee experienced a marginal depreciation of 3 paise against the US dollar, closing at 83.52.

(The story will be updated shortly)