The rupee appreciated 7 paise to 74.69 against the US dollar in opening trade on Wednesday supported by positive domestic equities and sustained foreign fund inflows.
At the interbank forex market, the domestic unit opened at 74.71 against the US dollar, gained further ground, and touched 74.69 against the US dollar, registering a rise of 7 paise over its previous close.
It had settled at 74.76 against the US dollar on Tuesday.
“Asian currencies have started with gains against the US dollar this morning and could lend support,” Reliance Securities said in a research note adding that “RBI could be present in the markets to curb volatility”.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.08 percent to 92.34.
Forex traders further said that markets will look ahead to the US Federal Reserve minutes scheduled to release tonight.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 161.08 points higher at 38,689.40 and the broader NSE Nifty advanced 47.30 points to 11,432.65.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,134.57 crore on Tuesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, slipped 0.75 percent to USD 45.12 per barrel.