Following a significant decline in crude oil prices and foreign money inflows, the Indian rupee rebounded from its all-time low to close 3 paise higher at 79.30 against the US dollar on Wednesday.
The local currency's opening price on the interbank forex market was 79.29 vs the US dollar, moving with an intraday high and low of 79.24 and 79.37 respectively. It eventually settled at 79.30, up 3 paise from the previous close.
Investor confidence was negatively impacted by the U.S. dollar's solid tone and deteriorating global risk emotions. Traders would also be looking at the minutes of the Federal Open Market Committee (FOMC) for hints about the Federal Reserve's potential rate hike pathways.
The dollar index, which gauges the greenback's strength against a basket of 6 currencies, was up 0.18 percent at 106.72. Meanwhile, The benchmark for international oil, Brent crude futures, rose by 1.26 percent to USD104.06 a barrel after a sharp 10 percent decline on Tuesday.
Foreign institutional investors turned net buyers on Tuesday, buying shares worth Rs. 1,295.84 crore, according to exchange data.