The Indian rupee climbed to its strongest level in a month on Wednesday, driven by a combination of falling crude oil prices and a softer US dollar.
The currency's advance marks a notable reversal from recent weakness, with the pair breaking through the 95 level against the greenback.
Forward premiums for the rupee also declined during the session, indicating that market participants are pricing in less depreciation risk over the coming weeks.
This drop in hedging costs provides temporary relief for Indian importers and exporters managing currency exposure ahead of the Reserve Bank of India's upcoming monetary policy decision.
The rupee's recovery follows a period of volatility, having previously traded near 95.65 per dollar before finding support.
The current move suggests that easing energy costs are helping to narrow India's current account deficit, a key driver of currency pressure in emerging markets.