ICICIdirect believe the rupee may continue its consolidation for some more time before finding fresh direction.
Indian rupee ended 28 paise lower at 74.65 per dollar, amid selling seen in the domestic equity market despite new measures announced by the Finance Minister.
It opened lower at 74.44 per dollar against previous close of 74.37 and trade in the range of 74.38-74.75.
The Sensex was down 236.48 points or 0.54% at 43357.19, and the Nifty was down 58.40 points or 0.46% at 12690.80.
"USD INR well bid both onshore and offshore due to constant buying by PSB on behalf of RBI. Yesterday oil companies also joined the Bandwagon to keep USDINR higher despite most Asian currencies having appreciated," said Anil Kumar Bhansali - Head of Treasury, Finrex Treasury Advisors.
"It seems RBI and Central Government just want rupee to be in depreciation mode to ensure export competitiveness, though a weaker Rupee has never helped exports. Opening should be around 74.35 and range 74.20/60 for the day," he added.Oil prices rose in early trade on Thursday, taking the week's gains to more than 12% on growing hopes that the world's major producers will hold off on a planned supply increase as soaring cases of COVID-19 dent fuel demand.