The rupee rose 7 paise to 82.73 against the dollar on Wednesday amid positive sentiment in the stock market.
However, higher crude oil prices and a stronger dollar weighed on the Indian currency, currency traders said.
In terms of inter-bank foreign exchange, domestic units opened stronger, reported 82.67, and hit 82.74 against the US dollar.
Subsequently, the rupee traded at 82.73 against the dollar, up 7 paise from the previous close.
On Tuesday, the rupee closed at 82.80 against the dollar.
Gaurang Somaiya, FX and bullion analyst at Motilal Oswal Financial Services, said: “Late yesterday, the U.S. dollar fell sharply, which led to gains not only in major crosses but also in commodities.”
On the domestic front, GDP data is something to watch and better-than-expected data could support the rupee, he said. GDP data is due on Thursday.
Meanwhile, the U.S. dollar index , which measures the greenback’s strength against a basket of six currencies, rose 0.08% to 103.61.
Brent crude futures, the global oil benchmark, rose 0.33% to $85.77 a barrel.
On the domestic market, the 30-share BSE Sensex rose 291.53 points, or 0.45 percent, to 65,367.35. The broader NSE Nifty rose 78.20 points, or 0.40%, to 19,420.85.
Foreign institutional investors (FII) were net buyers in the capital market on Tuesday, buying stocks worth Rs 615.1 crore, according to exchange data.
