Traders said sustained foreign fund inflows into the domestic equity markets also helped the local unit.
"Investment into the domestic equity and debt markets has already crossed USD 6 billion this month and there is still about one week of trading left in the month," Reliance Securities said in a research note.
"However, these flows are being continuously mopped up by the central bank, which could limit appreciation bias of the local unit," the research note said adding that markets are also factoring in that the US Federal Reserve may further loosen monetary policy in December as fiscal stimulus plans remaining uncertain.
The US Fed's next meeting is scheduled between December 15 and 16.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.02 per cent down at 92.28 amid reports that US Senate Republican leaders have agreed to resume negotiations on another coronavirus stimulus package.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 196.78 points higher at 43,796.74 and broader NSE Nifty surged 61.80 points to 12,833.50.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,180.61 crore on a net basis on Thursday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 0.29 per cent to USD 44.33 per barrel.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.