MUMBAI: The rupee pared its initial losses and settled 44 paise higher at 81.25 (provisional) against the US dollar on Wednesday, tracking a weak greenback overseas and a firm trend in domestic equities.

At the interbank foreign exchange market, the local unit opened weak at 81.80, but pared the losses and settled for the day at 81.25 (provisional), registering a rise of 44 paise over its previous close. During the trading session, the local unit witnessed an intra-day high of 81.25 and a low of 81.82 against the American currency.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.45 per cent to 101.93.

Global oil benchmark Brent crude futures rose 1.38 per cent to USD 87.11 per barrel.

Meanwhile, Gold price declined Rs 105 to Rs 56,526 per 10 grams. On the contrary, Silver rose by Rs 52 to Rs 69,694 per kilogram.