The rupee opened at 94.88 and slipped to 94.86 against the dollar.
A stronger dollar kept pressure on the local currency.
Lower crude prices and FII buying supported the rupee.
Rupee declined 10 paise to 94.86 against the US dollar in early trade on Wednesday as the greenback continued to gain in strength.
However, sharp decline in global crude oil prices and FII inflows supported the local unit to prevent a sharper decline, forex traders said.
At the interbank foreign exchange, the rupee opened at 94.88 before rising marginally to 94.86, down 10 paise from its previous close.
1 June 2026
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The rupee declined 13 paise to close at 94.76 against the US dollar on Tuesday.
"The rupee opened weaker against the dollar, extending its third straight session of pressure as the greenback stayed broadly firm. Early trade suggests the pair may remain biased higher as importer demand and dollar buying continue to outweigh selective exporter supply," Kaveri More, Commodity Analyst Technical Commodity Analyst at Choice Broking, said.
"A sustained break above 95 could open the door toward 95.50 and then 96.00, while immediate support is seen around 94.10-94. Near-term direction will likely hinge on broader dollar sentiment, crude oil trends, and foreign portfolio flows, with the RBI's presence also keeping volatility in check. For now, the market tone remains cautious, and dips may be used to rebuild long dollar positions," she added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 101.48, up 0.08%.
Brent crude, the global oil benchmark, was trading lower by 1.02% at $76.29 per barrel in futures trade.
On the domestic equity market front, Sensex climbed 187.63 points to 76,388.31, while the Nifty also rebounded 57.75 points to 23,878.85.
Foreign institutional investors purchased equities worth Rs 17.86 crore on a net basis on Tuesday, according to exchange data.
