"Today s session confirmed what (USD/INR) bears would have feared. That there will not be any follow through to Friday s drop," a FX trader at a bank said.
At the interbank foreign exchange, the rupee opened 6 paise higher at 82.97 against the dollar. In early trade, the rupee was oscillating between 82.95 and 83.02.
Other emerging Asian currencies also declined, after Federal Reserve officials sought to push back against the dovish interest rate outlook that investors are pricing in.
According to forex analysts, a steep fall in crude oil prices from above USD 76 per barrel to the level of USD 73 a barrel provided support, but the Indian currency was weighed down by the muted trend in equity markets on the back of rising retail inflation in the country.
The US Federal Open Market Committee is scheduled to detail its monetary policy statement late on Wednesday. The US central bank is widely expected to keep interest rates unchanged and refrain from further tightening, given easing inflation in the worlds largest economy.