The rupee reversed intraday losses in afternoon trading on Wednesday helped by portfolio flows and recovery in local shares.
At 2:14 p.m., the rupee was at 49.44/45, steady at Tuesday's close, but way up from the low of 49.66 touched earlier in the day.
Outlook on the rupee is bullish as foreign investors are expected to park more funds in Asia's third-largest economy, where growth is seen perking up as the central bank gradually returns to an accommodative monetary policy.
Overseas investors have bought Indian shares worth $2.1 billion so far this year and invested $3.2 billion in debt, according to data from the Securities and Exchange Board of India.
The BSE Sensex too recovered all early losses and was up 0.19%.
