The rupee recovered 6 paise to settle at 82.74 (provisional) against the U.S. currency on Wednesday following weakness in the U.S. dollar in global markets.
FII inflows into the capital market and firm equity markets supported the local unit while gains in crude oil prices restricted the rupee upside, according to analysts.
At the interbank foreign exchange, the domestic unit opened higher at 82.67 amid overnight losses in the U.S. dollar against major global rivals. It moved between a high of 82.66 and a low of 82.81 in intra-day trade.
The rupee finally closed at 82.74 against the dollar, a gain of 6 paise compared to the closing level of 82.80 on Tuesday.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03% lower at 103.50 after U.S. data suggested that labour market was cooling, a scenario that could provide support for the U.S. Federal Reserve in eventual easing interest rates.
Brent crude futures, the global oil benchmark, rose 0.56% to $85.97 per barrel.
On the domestic equity market front, the BSE Sensex closed higher by 11.43 points or 0.02% at 65,087.25 points while the broader Nifty advanced by 4.80 points to close at 19,347.45 points.
Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth ₹61 crore, according to exchange data.
