The domestic currency on Wednesday rebounded by 15 paise to close at 75.37 (provisional) against the US dollar following a rally in domestic equities and weak American currency in the overseas markets.
In addition, lower crude prices also supported the rupee sentiment, forex deals said.
At the interbank forex market, the rupee opened strong at 75.29 against the greenback. During the session, the domestic unit swung between 75.19 and 75.51.
On Tuesday, the rupee had closed at 75.52 against the dollar.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd.
"USD-INR spot closed 14 paise lower on the back of lumpy corporate inflows. At the same time, pullback in US bond yields and oil prices and a rally in stock markets kept a cap on USDINR. Tonight focus will be on US CPI and US FOMC minutes. Bias continues to be upward and the expected range can be 74.90 to 75.70 levels on spot."
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.27 per cent to 94.26.
Brent crude futures, the global oil benchmark, declined 0.40 per cent to $83.09 per barrel.
After scaling a record peak of 60,836.63 during the session, the BSE Sensex settled 452.74 points or 0.75 per cent higher at 60,737.05, taking its winning run to the fifth consecutive day.
Similarly, the Nifty rallied 169.80 points or 0.94 per cent to 18,161.75. It touched an intra-day record of 18,197.80.
Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 278.32 crore, as per exchange data.
