The rupee firmed up by 3 paise to settle at 72.84 (provisional) against the US dollar on Wednesday in a restricted trade amid muted trend in the domestic equity market.
At the interbank forex market, the local unit opened at 72.87 against the greenback and witnessed an intra-day high of 72.81 and a low of 72.88.
It finally ended at 72.84 against the American currency, registering a rise of just 3 paise over its previous close.
On Tuesday, the rupee had finished at 72.87 against the American currency.
The dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.01 per cent to 90.42.
"The USDINR spot is trading within the tight range of 72.75-73.15. Currently, the market is flat and volatility is muted. The upbeat sentiments on account of optimism about a global recovery and inflows into local stocks will help Indian Rupee to appreciate, but likely RBI intervention at around 72.80-75.75 zone may limit the fall in USDINR pair," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.