The rupee recovered from its all-time low to close 3 paise higher at 79.30 provisional against the US dollar on Wednesday after a fall in crude oil and foreign fund inflows.
The local unit opened at 79.29 against the dollar and witnessed an intra-day high of 79.24 and a low of 79.37 on the interbank forex market.
It finally settled at 79.30, a rise of 3 paise over its previous close.
The rupee had closed at an all-time low of 79.33 against the US dollar in the previous session.
The Indian rupee rebounded from lower levels on positive domestic equities and a decline in crude oil prices on Wednesday. FII inflows supported Rupee, said Sharekhan, Anuj Choudhary Research AnalystChoudhary Research Analyst, Anuj Choudhary Research AnalystChoudhary Research Analyst, Sharekhan, by BNP Paribas, adding that firm Dollar capped sharp gains.
Investor sentiment was weighed down by a firm tone in the US Dollar and deteriorating global risk sentiment.
Any foreign inflows may support the Rupee. Crude oil prices fell below USD 100 barrel yesterday. If crude stays below USD 100 mark, it may support Rupee at lower levels, according to Choudhary.
The Traders would look at Federal Open Market Committee FOMC minutes for clues to the Fed's possible rate hike paths, according to Choudhary, who said that rupees may trade in the range of 78.50 - 80 in the next couple of sessions.
On the domestic equity market, the BSE Sensex ended up with 616.62 points or 1.16 per cent higher at 53,750. The broader NSE Nifty increased by 178.95 points or 1.13 per cent to 15,989. The dollar index, which measures the strength of the dollar against a basket of six currencies, was up 0.18 per cent at 106.72.
Brent crude futures, the global oil benchmark, rose by 1.26 per cent to USD 104.06 per barrel after recovering from a sharp 10 per cent decline on Tuesday.
Foreign institutional investors converted net buyers after a long gap in the capital market on Tuesday when they purchased shares worth Rs 1,295. According to exchange data, there were 84 crore.