The Indian rupee rose in early trade as softening crude prices eased concerns over India's current account deficit expansion. The currency which rallied by a huge 112 paise against the US dollar started the day with a gain of 45 paise in trade today as Brent crude, used to price international oils, sank 5.6 percent to $56.26 a barrel in London.
The rupee rose above the key 70 mark to trade at 69.86 level against the dollar in early trade.
Selling of the dollar by exporters and banks and the US currency's weakness ahead of the Federal Reserve policy decision on interest rates today. Investors expect the bank to raise interest rates, fourth increase this year and its ninth in three years.
On Tuesday, the rupee rallied by a whopping 112 paise, its best single-day gains in over five years, to settle at 70.44 against the US dollar on softening crude oil prices.
On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 144.76 crore on Tuesday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 182.6 crore, provisional data available with BSE showed.
Meanwhile, the Sensex opened 130 points higher at 36,476 and Nifty gained 37 points to 10,945.