Indian rupee ended higher at 73.11 per dollar, amid selling seen in the domestic equity market.
It opened flat at 73.17 per dollar against Tuesday's close of 73.17 and traded in the range of 73.05-73.19.
At close, the Sensex was down 263.72 points or 0.54% at 48,174.06, and the Nifty was down 53.20 points or 0.37% at 14,146.30.
"The dollar was well bid yesterday as RBI ensured that 73.00 is not breached. Flows were lower from FPIs as the Senate run off result and Bidens confirmation is still awaited. 73.10 to 73.40 should be today's range. Buy the dips for importers and sell the upticks for exporters can be the trade as equities remain in a range but broader markets are all up," said Anil Kumar Bhansali, Head - Treasury, Finrex Treasury Advisors.
Brent oil prices rose on Wednesday to the highest since February after Saudi Arabia agreed to make bigger cuts in output than expected during a meeting with allied producers, while industry data showed U.S. crude stockpiles fell last week.
The U.S. dollar steadied in Asia on Wednesday as traders looked to the outcome of a Senate election in Georgia to drive the next move in market sentiment.
The USDINR pair has recovered from its major support of Rs 73 levels and depreciated marginally towards 73.40. We expect the pair to remain in the range of 73 to 73.60 levels in the coming sessions, said ICICIdirect.
The dollar-rupee January contract on the NSE was at Rs 73.39 in the last session. The open interest in the January series remained flat in the last session, it added.