The Indian rupee gained 8 paise to trade at day’s high level of 69.36 against the dollar compared to its previous close of 69.44/$.
The currency has opened 6 paise higher at 69.38/$.
At 11:05, AM, IST, the unit was trading flat at 69.44/$.
Notably, the currency is oscillating between its gains and losses and fell 1 paise to trade at day’s low level of 69.45/$. However, weakness in the domestic equity market capped the rally in the domestic currency.
The appreciation could be attributed to falling crude oil prices in global market. As per Bloomberg data, Brent falling ~2% at $61.41/bbl and WTI dropped ~2% at $52.30/bbl.
This is after the US Energy Information Administration (EIA) cut its forecasts for 2019 world oil demand growth and US crude oil production in a monthly report released on Tuesday. It reduced its 2019 world oil demand growth forecast by 160,000 barrels per day (bpd) to 1.22mn bpd, although it also wound back its forecast for 2019 US crude production to 12.32mn bpd, 140,000 bpd less than the May forecast. Additionally, according to data released by the American Petroleum Institute (API) on Tuesday US crude inventories unexpectedly rose by 4.9mn barrels in the week ended June 7 to 482.8 mn barrels.
Equity benchmark indices snapped three-days gain and were trading in the red on Wednesday. The Sensex slipped 220 points at 39,729 levels and the Nifty dropped 65 points at 11,900 levels.