On improving risk sentiment, the rupee gains 8 paise to 82.76 against the US dollar

Following a weak greenback in global markets, the rupee rose by 8 paise to settle at 82.76 (provisional) against the US currency on Thursday.

However, losses in domestic stocks and higher crude oil prices limited the rupee's gains, according to FX brokers.

The local currency began higher at 82.78 on the interbank foreign exchange market, following overnight losses in the greenback as risk sentiment strengthened.

The rupee ranged from 82.64 to 82.79 to the dollar during the day before finishing at 82.76, up 8 paise from the previous day.

On Wednesday, the rupee fell 14 paise to close at 82.84. Investor sentiment increased after a survey revealed that consumer confidence in the United States is holding strong despite the Federal Reserve's campaign to combat inflation by raising interest rates.

Consumer confidence jumped to 108.3 in December, the highest level since April, from 101.4 in November, according to the Conference Board.

The dollar index, which measures the strength of the US currency against a basket of six currencies, fell 0.32 percent to 103.898.

Brent crude, the worldwide trade benchmark, rose 1.58 percent to USD 83.50 per barrel after US inventory data revealed that the Strategic Petroleum Reserve had fallen to 378.6 million barrels, its lowest level since 1983.

Meanwhile, the benchmark BSE Sensex sank 241.02 points to close at 60,826.22, while the Nifty dropped 71.75 points to 18,127.35.

According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, selling shares worth Rs 1,119 crore.