Indian rupee ended flat at 72.91 per dollar, amid buying saw in the domestic equity market.
It opened marginally lower at 72.96 per dollar versus previous close of 72.93 and traded in the range of 72.89-73.09.
At 14:58 IST, the Sensex was up 175.68 points or 0.34% at 51,201.16, and the Nifty was up 56 points or 0.37% at 15,154.40.
As a sharp reversal was seen in domestic equities in the second half, the rupee recovered, appreciating further. Call writers are becoming active in OTM strikes but as the dollar index remained above 92 levels we feel the rupee could consolidate, said ICICI Direct.
The dollar-rupee March contract on the NSE was at Rs 73.14 in the last session. The open interest fell by 1.4% for the March series, it added.
Oil ticked higher on Wednesday, after falling for two straight sessions, with investors looking ahead to US inventories data due later in the day for pointers on where prices will head next.
"Rupee traded strongly above 73.00 as dollar index retraced some of its rally witnessed in the last few days. The dollar Index which is traded around $92.4 retraced back to $91.90 giving the Indian rupee positive momentum, along with stable financial market participation. Going ahead rupee can be seen trading between 72.70-73.15," said Jateen Trivedi, Senior Research Analyst at LKP Securities.