The Indian rupee strengthened against the US dollar in early Wednesday trade, appreciating 5 paise to close at 95.77.
The local currency opened at 95.70 before slipping slightly to settle at the stronger level, marking its fourth consecutive day of gains.
This continued appreciation follows a recent recovery phase where the rupee had previously advanced 19 paise to 95.16 and 26 paise to 94.90 in earlier sessions.
The move is driven by a combination of a weakening US dollar and declining crude oil prices, which reduce India's import bill pressure.
The rupee's resilience comes despite broader headwinds from elevated global energy costs that have historically weighed on emerging market currencies.
The steady improvement suggests that market participants are pricing in a temporary reprieve from dollar strength, allowing the rupee to find support near multi-month highs.
This development is part of a broader trend of rupee stabilization, with the currency showing consistent strength over the past week.