Snapping its two-day decline, the rupee opened higher at 72.71 against its record closing low of 72.98 Tuesday and touched a session high of 72.34 in day trade as crude oil prices eased globally.
At the interbank foreign exchange, the rupee opened strong at 74.30 against the dollar, then gained further ground to 74.29, a rise of 6 paise over its previous close.
The share of the Indian rupee in the global NDF turnover has also increased significantly to 19.4% in 2019 from 12.6% in 2016. It was 14.4% in 2013. “The rise in offshore trading can disrupt the price discovery process of exchange rates in the onshore market,” the research paper said.