After the Reserve Bank of India (RBI) raised the key repo rate by 35 basis points, the rupee recovered some of its early losses and settled marginally higher at 82.47 against the US dollar on Wednesday.
Forex traders said that falling crude oil prices boosted the domestic currency.
The local currency opened at 82.74 against the US dollar on the interbank foreign exchange market, reaching an intraday high of 82.40 and a low of 82.75.
The local unit eventually settled at 82.47, up 3 paise from its previous close of 82.50.
The RBI stated that inflation could remain above 4% in the coming year.
Brent crude futures fell 1.79 percent to USD 77.93 per barrel, the global oil benchmark.
The 30-share BSE Sensex fell 215.68 points, or 0.34 percent, to end at 62,410.68, while the broader NSE Nifty fell 82.25 points, or 0.44 percent, to 18,560.50.
According to exchange data, foreign institutional investors (FIIs) were net sellers in capital markets on Tuesday, offloading shares worth Rs 635.35 crore.
Source:FE