The Indian rupee opened higher against the US dollar on Thursday, appreciating 26 paise to trade at 94.90.
The move marks a reversal from the previous session, where the currency had weakened to 94.86 in early Wednesday trade.
Forex traders attributed the immediate strength to a decline in global crude oil prices, which reduces import costs and eases pressure on the current account.
This early gain follows a volatile period for the rupee.
Just prior to Wednesday's slide, the currency had posted a 16-paise appreciation to settle at 94.39, driven by similar tailwinds from falling oil benchmarks.
The rapid oscillation between 94.39 and 94.86 highlights the currency's sensitivity to daily shifts in energy markets and broader risk sentiment.