Indian rupee, the domestic currency benchmark, appreciated 7 paise to 74.69 per dollar on Wednesday's opening bell, supported by positive domestic equities and sustained foreign fund inflows.
The domestic unit opened at 74.71 per dollar at the interbank forex market, gained further ground and touched 74.69 per dollar, registering a rise of 7 paise over its previous close of 74.76 per dollar on Tuesday.
"Asian currencies have started with gains against the US dollar this morning and could lend support," Reliance Securities said in a research note adding that "RBI could be present in the markets to curb volatility".
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.08 per cent to 92.34.
As per traders, markets will look ahead to the US Federal Reserve minutes scheduled to release tonight.
On the domestic equity market front, benchmark indices opened on a bullish note on Wednesday, amid positive global equities. Sensex was rising 210 points higher at 38,738 and Nifty was trading 60 points higher at 11,450.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,134.57 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 379.38 crore in the Indian equity market on 18 August, provisional data showed.
Oil price remained flat as fear of lower demand offset the recent OPEC+ suppliers commitment to supply cuts. Brent crude futures, the global oil benchmark, slipped 0.75% to USD 45.12 per barrel.
Worldwide, there are 223 lakh confirmed cases and 7.84 lakh deaths from COVID-19 outbreak. Meanwhile, the death toll in India crossed 53,000 mark and total coronavirus stood at 27.68 lakh as of Wednesday.