The rupee fell by 9 paise to settle at 83.27 against the U.S. dollar on Thursday as withdrawal of foreign funds amid concerns over global trade disruption through the Red Sea route dented investor sentiment.

According to forex analysts, despite positive sentiment in the domestic equity markets and a weak American currency against major global currencies, the Indian unit was weighed down by the volatile crude oil prices.

At the interbank foreign exchange market, the local unit opened at 83.19 and traded between the peak of 83.18 and the lowest level of 83.28 against the dollar during intra-day deals.

It settled at 83.27 (provisional) against the greenback, registering a fall of 9 paise from its previous close.

On Wednesday, the domestic currency settled at 83.18 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06% lower at 101.97 on Thursday.

Global oil price benchmark Brent crude climbed 0.31% to $79.95 per barrel.

In the domestic equity market, the 30-share BSE Sensex rose by 358.79 points or 0.51% to settle at 70,865.10. The broader NSE Nifty soared 104.90 points or 0.50% to 21,255.05.

Foreign institutional investors (FIIs) were net sellers in the equity market on Wednesday as they offloaded shares worth ₹1,322.08 crore, according to exchange data.