The Indian rupee appreciated by 11 paise to 71.74 against the United States (US) dollar in early trade on Wednesday.
At the interbank foreign exchange the rupee opened at 71.76 and touched a high of 71.74, registering a rise of 11 paise over its previous close.
On Tuesday, rupee had settled for the day at 71.85 against the US dollar.
The domestic unit, however, could not hold on to the gains and was trading at 71.78 against the dollar at 1002 hrs.
Meanwhile, investor sentiment remained fragile amid concerns over the impact of coronavirus outbreak on global economy, forex traders said.
The death toll in China’s novel coronavirus epidemic on Wednesday climbed to 2,715 with 52 new fatalities while the confirmed cases rose to 78,064.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.13 per cent to 99.09.
The 10-year government bond yield was at 6.32 per cent in morning trade.