Indian rupee opened slightly higher against the US dollar on Thursday on the back of weakness in the greenback and fall in crude oil prices.

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The partially convertible currency also gained ground after the Finance Ministry on Wednesday issued a statement to dampen concerns over a spat between the government and the central bank.

At 09:10 AM, the rupee was trading at 73.82 a dollar, up 6 paise from its Wednesday’s close of 73.96. The home currency opened at 73.89 and touched a high and a low of 73.81 and 73.89 a dollar, respectively.

Positive global cues helped lift rupee. The dollar index, which measures the greenback against a basket of six major currencies, was down 0.2 percent while oil prices fell early, extending losses in previous sessions, amid signs of rising supply.

The currency was under pressure in the previous session amidst growing furor between the RBI and the government. However, the rupee pared some of its losses to reach the day’s high of 73.79 Wednesday after the Finance Ministry in a statement stressed that the government has “nurtured and respected” the autonomy of the central bank and has been holding extensive consultations with it on many issues.

Despite easing concerns, unabated capital outflows by foreign funds continued to dampen the sentiment, according to market experts.

Foreign funds pulled out Rs 1,592.02 crore from the capital markets on a net basis, while domestic institutional investors bought shares worth Rs 1,363.04 crore Tuesday, provisional data showed.

The rupee is the worst performing emerging market currency having lost almost 15 percent since January this year. Between April and September the rupee has plummeted more than 7 percent to the dollar.

In debt markets, the yields on the 10-year government bonds fell 0.27 percent to 7.83 percent after closing at 7.85 percent on Wednesday. Bond yields and prices move in opposite directions.

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First Published:Nov 1, 2018 9:16 AM IST