The rupee recovered 56 paise to settle at 73.61 (provisional) against the US dollar on Wednesday amid positive domestic equities and weakening of the American dollar in the overseas market.
The rupee on March 9 had plunged to a 17-month low of 74.17 against the US dollar amid mounting fears of a coronavirus-led economic slowdown.
At the interbank foreign exchange market, the rupee opened higher at 73.88 gained further ground to touch a high of 73.55 in day trade. The local unit finally settled at 73.61 (provisional) against the US dollar, registering a rise of 56 paise over its previous close.
The forex market was closed on Tuesday on account of Holi.
"Rupee traded strong after flat positive opening on selling of USDINR pair by exporters following likely intervention by the Reserve Bank of India (RBI) to curb sharp volatility in the currency pair USDINR," Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.
Trivedi further said that "more or less the market will keep trading volatile as coronavirus updates keep the buyers interested in USIDNR pair but falling crude prices give the strength to rupee".
Going ahead the rupee can trade in range in 73.45-73.85, he noted.