The rupee advanced 42 paise to 76.20 against the US dollar in the opening trade on Thursday, supported by positive domestic equities and early trends in state election results.
At the interbank foreign exchange, the rupee opened at 76.27 against the US dollar, then gained momentum and touched 76.20, registering a gain of 42 paise from the previous close.
On Wednesday, the rupee had appreciated 38 paise to close at 76.62 against the US dollar following a retreat in crude oil prices and rebound in domestic equities.
"The rupee opened on a strong note as the state election results are as per market expectations. Fighting in Ukraine is on a pause for the moment and risk-on sentiments continue for the moment," said Anil Kumar Bhansali, head (Treasury) at Finrex Treasury Advisors.
Counting of votes is underway on Thursday in five states where Assembly polls were held recently — Uttarakhand, Uttar Pradesh, Punjab, Goa and Manipur.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.16 per cent to 98.12.
Meanwhile, global oil benchmark Brent crude futures jumped 3.39 per cent to $114.91 per barrel.
On the domestic equity market front, the 30-share Sensex was trading 1,361.07 points or 2.49 per cent higher at 56,008.40, while the broader NSE Nifty rose 368.40 points, or 2.25 per cent, to 16,713.75.
Foreign institutional investors remained net sellers in the capital market on Wednesday as they offloaded shares worth Rs 4,818.71 crore, as per stock exchange data.