The rupee appreciated 6 paise to 82.90 against the US dollar in early trade on Thursday ahead of the Reserve Bank's monetary policy decision.
At the interbank foreign exchange, the rupee opened at 82.94 against the dollar, then touched 82.90, registering a gain of 6 paise over its previous close.
On Wednesday, the rupee appreciated 9 paise to close at 82.96 against the dollar.
The Reserve Bank of India's Monetary Policy Committee (MPC) began the deliberations on Tuesday and the announcement on interest rate decision is expected at 1000 hours.
In a research note, wealth management firm IFA Global said RBI is expected to keep rates and policy stance unchanged. Statements on liquidity in the banking system and how RBI plans to manage the same will be closely followed, it added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06 per cent lower at 103.99.
Brent crude futures, the global oil benchmark, rose 0.39 per cent to $79.52 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 181.05 points or 0.25 per cent higher at 72,333.05 points. The broader NSE Nifty advanced 59.60 points or 0.27 per cent to 21,990.10 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth ₹1,691.02 crore, according to exchange data.