USDINR opened 18 pips firm @ 70.09/10 against Wednesday finished trade @ 70.27/28.
Rupee getting support by dollar selloff on heavy FII inflows.
Indian currency, which is down about 1% this year, is forecast to weaken nearly 2 percent by end-May, suggesting upcoming elections are a clear risk.
In the medium-term we expect a gradual depreciation of the INR due to a normalization of inflation rates.
INTRADAY RANGE - 69.75 ( 69.95 - 70.45 ) 70.83
On Wednesday, the second successive session of gain for the domestic currency, during which it has climbed 64 pips.
Interbank market, the rupee opened on a weak note at 70.59/60. Intra-day, it fluctuated between 70.68 and 70.2475, before finally closing at 70.27/28, up 21 pips over its previous close.
Forex traders said heavy buying in domestic equities and robust foreign fund inflows also propped up the rupee.
Major currencies kept to tight ranges on Thursday as traders focused their immediate attention on the European Central Bank's (ECB) policy review, while the Australian and Canadian dollar languished near two-month lows.
Some traders expect the ECB will indicate a delay in raising rates until next year and the central bank will soon re-launch long-term bank loans to fight an economic slowdown.
The Aussie and the loonie hit their lows as investors trimmed holdings on growing expectations policymakers would leave interest rates alone for the time being or even lower them to counter their weakening economies.
The Bank of Canada (BoC) on Wednesday said there was "increased uncertainty" about the timing of future rate hikes as it held interest rates steady at 1.75 percent as expected.
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