The local unit opened higher by 14 paise at 72.36 per dollar against the previous close of 72.50. It traded in the range of 72.30 - 72.47 on Tuesday.
Oil prices rose again on Tuesday after a jump in the previous session, holding near a more than 13-month high as US output was slow to return after a deep freeze in Texas shut-in crude production last week.
Global oil benchmark Brent Crude was trading 0.97% higher at USD 65,87 per barrel.
The dollar nursed losses near a six-week low on Tuesday while commodity currencies loitered around multi-year highs, as investors’ focus shifted to how US Federal Reserve chief Jerome Powell might respond to resurgent inflation expectations.