The rupee was pegged against the US dollar early on Thursday, weighed down by negative returns in domestic equities and a strong US currency.
Forex traders said the Indian rupee was weighed down by a rise in the dollar index following dovish comments from Federal Reserve officials.
At the interbank rate, the rupee opened at 83.16 against the dollar, down 5 paise from its previous close. The domestic unit also touched 83.08 against the US currency in early trade.
On Wednesday, the rupee recovered sharply from its lifetime low to gain 21 paise to close at 83.11 against the US dollar. "After the hawkish FED did not rule out one hike in 2023 due to sticky inflation and kept interest rates at a narrower-than-expected margin in 2024, comments bode poorly for Asian markets as it tightens monetary conditions and curbs foreign capital flows to the country. region," said Finrex Treasury Advisors LLP CFO and CEO Anil Kumar Bhansali.
The FOMC also emphasized that long-term forecasts are inherently uncertain and subject to change because the economic climate is very dynamic and contains many potential risks that could affect future results, Bhansali said.
The dollar index, which measures the dollar's strength against a basket of six currencies, rose 0.21 percent to 105.55.

Brent crude futures, the global oil benchmark, were down 0.66 percent at $92.91 a barrel.
In the domestic stock market, the 30-share BSE Sensex fell 306.96 points or 0.46 percent to 66,493.88 points. The broader NSE Nifty was down 82.95 points, or 0.42 percent, at 19,818.45.
Foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they disposed of shares worth Rs 3,110.69 crore, according to exchange data.