The rupee has dropped by more than 1 per cent in April and by 3.52 per cent this year so far
Brent crude, an international benchmark, was trading at USD 74.58 a barrel in early Asian trade - highest level since November 2014
A number of favourable factors, including encouraging growth-inflation dynamics driven by high industrial growth aided trading mood
Most Asian and emerging market currencies were trading lower after US President Donald Trump ramped up his trade war rhetoric with China
Investors were also cautious ahead of GDP and IIP numbers to be released later on Wednesday
Market nervousness over possible fiscal slippages due to a sudden spike in global crude prices along with massive capital outflows added to the volatility
The RBI fixed the reference rate for the dollar at 65.0458 and for the euro at 79.8307
The rupee had depreciated by a staggering 88 paise in the recent spell of sell-offs
The weakness in US dollar against some of its key rivals, including Japanese yen, also supported the rupee's upmove
The reason for rupee's relative sluggishness is rising oil prices. However, a correction in overvalued rupee was long overdue