The rupee appreciated by 22 paise to 76.78 against the US dollar in early trade on March 9, supported by weakness in the US dollar and improvement in domestic equity markets.
Forex traders said the rupee could remain range bound and could see higher volatility amid Russia-Ukraine conflict.
At the interbank foreign exchange, the rupee opened at 76.90 against the US dollar, then picked up momentum and touched 76.78, registering a gain of 22 paise from the previous close.
On Tuesday, the rupee fell for the fifth consecutive day and settled 7 paise lower at 77 against the US dollar, weighed down by surging crude oil prices.
Sriram Iyer, Senior Research Analyst, Reliance Securities said that the Indian Rupee may remain in a narrow range this Wednesday and it will remain heavily volatile.
The dollar fell, while recovery in domestic equity markets could limit weakness. However, oil continued to rise after the US embargo on Russian energy products and could limit price appreciation bias, Mr. Iyer said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05% to 99.01. Meanwhile, global oil benchmark Brent crude futures jumped 2.59% to $131.29 a barrel.
Feather domestic equity market In front, the 30-share Sensex was trading 550.95 points or 1.03% higher at 53,975.04, while the broader NSE Nifty rose 117.70 points or 0.74% to 16,131.15.
Foreign institutional investors remained net sellers in the capital markets on Tuesday as they sold shares worth ₹8,142.60 crore, according to stock exchange data.