The rupee rose 18 paise to 75.14 against the US dollar in early trade on Wednesday amid signs of easing of tensions between Russia and Ukraine.
At the interbank foreign exchange, the rupee opened at 75.24 against the US dollar and then moved higher at 75.14, registering an increase of 18 paise from the previous close.
The rupee on Tuesday ended five sessions lower and closed 28 paise higher at 75.32 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06% higher at 96.04.
“The Indian rupee strengthened against the US dollar on Wednesday as tensions eased in Eastern Europe,” said Sriram Iyer, Senior Research Analyst, Reliance Securities.
Crude oil and the dollar fell further on Wednesday morning, Mr Iyer said, adding that investors would watch retail sales data and Fed minutes for further signs.
US President Joe Biden has said the possibility of an invasion of Ukraine remains. Mr Biden said the US was still open to diplomacy to resolve the issue, while insisting that more than 150,000 Russian troops remained on the Ukrainian border.
On the domestic equity market front, the 30-share Sensex was trading 85.87 points or 0.15% lower at 58,056.18, while the broader NSE Nifty fell 14.10 points or 0.08% to 17,338.35.
Global oil benchmark Brent crude futures fell 0.26% to $93.04 a barrel.
Foreign institutional investors were net sellers in the capital markets on Tuesday as they sold shares worth 2,298.76 crore, according to stock exchange data.
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