The rupee appreciated 18 paise to 75.14 against the US in the opening trade on Wednesday, amid signs of de-escalation in the conflict between Russia and Ukraine.
The rupee opened against the American at 75.24 and then moved higher to quote 75.14, registering a rise of 18 paise from the last close.
The dollar index, which gauges the strength of the dollar against a basket of six currencies, was trading 0.06 per cent higher at 96.04.
Sriram Iyer, Senior Research Analyst at Reliance Securities said that the US Dollar opened stronger against the US Dollar on Wednesday as tension de-escalated in Eastern Europe.
Iyer said that investors will look to retail sales data and Fed minutes for further cues as the dollar was subdued this Wednesday morning and lent support.
US President Joe Biden said that an invasion of Ukraine is a possibility. Biden said that the US is still open to diplomacy to resolve the issue, but he stressed that more than 150,000 Russian troops remain on the Ukrainian border.
On the domestic equity market front, the Sensex traded 85.87 points or 0.15 per cent lower at 58,056. The broader NSE Nifty declined 14.10 points or 0.08 per cent to 17,338, while the broader NSE Nifty declined by 14.10 points or 0.08 per cent. Global oil benchmark Brent crude futures fell by 0.26 per cent to USD 93.04 per barrel.
Foreign institutional investors offloaded shares worth Rs 2,298, which was net sellers in the capital market on Tuesday. According to stock exchange data, there were 76 crore.