The Indian rupee appreciated 16 paise to settle at 94.39 against the US dollar on Thursday, marking a continued recovery for the currency.
The move was driven by a combination of declining global crude oil prices and positive sentiment in domestic equity markets, which helped offset broader dollar strength.
This session's gain follows a volatile period for the rupee, which had weakened to 94.86 in early Wednesday trade before rebounding to close at 94.65 later that day.
The recent trajectory shows the currency reversing previous losses, supported by the same factors of falling energy costs and supportive domestic market conditions.
Lower crude oil prices are particularly significant for India, the world's largest oil importer, as they help narrow the trade deficit and reduce pressure on the current account.
This dynamic often provides a floor for the rupee during periods of dollar strength, as seen in the recent sessions where the currency has managed to stabilize and gain ground.