Mumbai, Jul 23 (PTI) The rupee rose 5 paise to 96.48 against the US dollar in early trade on Thursday on possible intervention by the Reserve Bank even as heightened tensions in West Asia maintained pressure on global crude oil prices.

FII outflows and sustained negative sentiments in the domestic equity markets added pressure on the local unit, while a weaker greenback provided some respite, forex traders said.

At the interbank foreign exchange, the rupee opened at 96.53 before inching up to 96.48, up 5 paise from its previous close.

The rupee depreciated by 28 paise to close at 96.53 against the US dollar on Wednesday.

"State-owned banks were seen selling dollars -- widely viewed as intervention on behalf of the RBI -- around the 96.50 level, preventing a steeper depreciation but the closure remained lower for the rupee on Wednesday. Rupee remains near its all-time closing low and if oil prices keep rising we may see it crossing this level, too," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

The US military announced on Wednesday that it was conducting a 12th night of strikes against Iran as both sides increasingly targeted civilian infrastructure.

President Donald Trump warned earlier on Wednesday that the US would destroy one bridge or power plant each time Iran shoots at a ship in the strait.

"The rupee is expected to move in the range of 96.50-96.65 in Thursday's session, with risk tilted to the downside, although support from the RBI is likely to limit the losses. Key support would be at 96.10-95.80," Aamir Makda, Commodity & Currency Analyst, Technical Research, Choice Broking, said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.14 per cent at 100.97.

Brent crude, the global oil benchmark, was trading 2.26 per cent higher at USD 96.20 per barrel in futures trade.

Forex traders said crude oil prices remain elevated amid concerns over the security of oil shipments through the Red Sea and Strait of Hormuz.

On the domestic equity market front, Sensex extended losses on Thursday, declining 230.95 points to 76,521.02 in early trade, while Nifty was down 57.15 points to 23,937.

Foreign Institutional Investors offloaded equities worth Rs 819.20 crore on a net basis on Wednesday, according to exchange data. PTI TRB TRB DR DR