The rupee was up 22 paises against the US dollar in opening trade on March 9 to 76.78, helped by weakness in the US dollar and the recovery in domestic stock markets.
Forex traders said the rupee could remain range-bound and see high volatility amid the deepening conflict between Russia and Ukraine.
On the interbank forex exchange, the rupee opened at 76.90 against the US dollar, then gained momentum to reach 76.78, posting a gain of 22 paise from the previous close.
On Tuesday, the rupee fell for the fifth straight day, depreciating 7 paise to close at an all-time low of 77 against the US dollar, weighed down by rising crude oil prices.
The Indian rupee could remain range-bound this Wednesday and will continue to experience high volatility, said Sriram Iyer, senior research analyst at Reliance Securities.
The dollar fell while a rebound in domestic stock markets could limit weakness. However, oil continued to rise after the US ban on Russian energy products and may dampen the appreciation trend, Mr Iyer noted.
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, fell 0.05% to 99.01. Meanwhile, global oil benchmark Brent crude futures were up 2.59% to $131.29 a barrel.
On the domestic stock market front, the 30-piece Sensex traded 550.95 points, or 1.03%, higher to 53,975.04, while the broader NSE Nifty was up 117.70 points, or 0.74%, to 16,131.15.
Foreign institutional investors remained net sellers in the capital market on Tuesday, selling ₹8,142.60 crore of shares, according to stock market data.