Extending gains for the second day, the rupee on Wednesday rose by 20 paise to settle at 71.65 against the US dollar in line with other Asian currencies, helped by lower crude oil prices.
At the interbank foreign exchange market, the local currency opened at 71.76 to the US dollar. During the day, the local unit saw a high of 71.59 and a low of 71.79. The domestic unit finally settled at 71.65, up 20 paise from its previous close. The rupee had settled at 71.85 against the US dollar on Tuesday.
"The rupee opened on a flat note and witnessed volatility after the RBI, yesterday, announced two long-term repo operations (LTROs) for three-year tenors worth Rs 25,000 crore each to be conducted on March 2 and March 9," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.
Also, forex traders said, easing crude oil prices supported the local unit. The global crude benchmark Brent futures fell 1.40 per cent to trade at USD 54.18 per barrel.
"Indian rupee, in line with other Asian currencies, gained amid lower dollar index and crude oil prices," said VK Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.