The Indian rupee strengthened by 8 paise to reach 83.37 against the US dollar in early trading on Friday. This was supported by a positive trend in domestic stocks and inflows from foreign funds. However, the local currency faced pressure from the strong US dollar in the international market and high crude oil prices. The rupee had opened at 83.42 at the interbank foreign exchange market and then further improved to 83.37, marking an 8-paise increase from its previous closing level. On Thursday, the rupee had appreciated by 12 paise to settle at 83.45 against the US dollar. Meanwhile, the dollar index, which measures the dollar against a basket of six other currencies, was up by 0.15%, trading at 106.06, ahead of the important US inflation data release later in the day. Brent crude futures, the global oil benchmark, were trading 0.47% higher at USD 86.80 per barrel due to concerns about supply disruptions from Russia and the Middle East amid ongoing conflicts, offsetting a decrease in demand. Inflows on Thursday had helped push the rupee up from its Wednesday closing level, and Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, mentioned that similar inflows were expected on Friday, especially with month-end and quarter-end transactions, which could further strengthen the rupee towards 83.35. He also indicated that exporters might hold off on selling, and importers might seize opportunities to buy on price dips. In the Indian stock market, the 30-share BSE Sensex rose 347.48 points, or 0.44%, to 79,590.66 points, while the broader NSE Nifty increased by 114.55 points, or 0.47%, reaching 24,159.05 points. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, having purchased shares worth Rs 7,658.77 crore, according to exchange data.