The rupee on Monday slipped past the 74-level against the US dollar to settle at 74.08, down 29 paise tracking heavy selling in domestic equity market.
The Indian rupee erased the intraday losses and trading higher by 37 paise at 73.71 per dollar, amid buying seen in the domestic equity market.
It opened higher by 27 paise at 73.81 per dollar versus 74.08 Monday.
The currency market was remain shut on Tuesday on account of Holi.
The rupee on Monday slipped past the 74-level against the US dollar to settle at 74.08, down 29 paise tracking heavy selling in domestic equity market amid rising concerns over coronavirus-led economic slowdown.
Forex traders said the rupee depreciated versus major trading currencies as a collapse in oil prices added to risk off sentiment caused by relentless spread of coronavirus across the globe.
The Sensex was up 263.77 points or 0.74% at 35898.72, and the Nifty was up 61.00 points or 0.58% at 10512.50.
Oil prices climbed for a second day on Wednesday, lifted by hopes that US producers will cut output, but gains were limited compared with Monday's crash after Saudi Arabia and Russia triggered a price war.
Gold also rose, recouping some of the ground it lost a day earlier, as doubts regarding the US stimulus package dragged down Asian equities and US stock futures, and the dollar fell.