The rupee declined 18 paise to close at 74.36 against the US dollar on Wednesday, tracking strengthening American currency in the overseas market and higher crude prices.
However, a strong rally in domestic equities and unabated foreign fund inflows restricted the slide of the domestic unit, forex traders said.
At the interbank foreign exchange market, the local currency opened on a weak note at 74.24 and swung between the day’s high of 74.18 and low of 74.50 to the US dollar.
The rupee finally settled at 74.36 against the greenback, down 18 paise over its last close.
In the previous session, it had settled at 74.18 against the US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.15 per cent to 92.87.
Meanwhile, Brent crude futures, the global oil benchmark, spiked 3.26 per cent to USD 45.03 per barrel.
“Indian rupee depreciated amid strong dollar and surge in crude oil prices. Further, rupee slipped on worries over a slowdown in global economic recovery due to resurgence in COVID-19 cases.