USD/INR closed at 71.11 against its opening at 71.28. USD/INR closed down on likely FII inflow into the local stocks and weak dollar.
Dollar/rupee traded down on Wednesday on selling by exporters and weak dollar. Rupee appreciated on selling by foreign banks on behalf of the exporters and dollar remained weak on improved risk appetite due to optimism over the new round of US-China trade talk.
Crude oil prices continued trading above $66 a barrel, backed by supply cuts led by producer club OPEC and reports of falling Saudi Arabian exports amid sanctions by US sanctions on Iran and Venezuela.
The US President Donald Trump said on Tuesday that trade talks with China are complex but are "going very well" and again indicated the Mar 1 deadline for raising tariffs could be extended. Officials on Tuesday resumed the high-stakes negotiations aimed at ending a damaging tariff war between the two countries.
The US is asking China to keep the value of the Yuan stable as part of trade negotiations between the world's two largest economies, a move aimed at neutralizing any effort by Beijing to devalue its currency to counter the US tariffs.
Also, investors await release of Federal Open market Committee's latest meeting minutes later on Wednesday that should shed more light on the central bank's turn to a more dovish tone.
The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 96.58 Wednesday late compared to 97.03 on Tuesday.
Sensex rallied in closing 404 points up to snap 9-day losing streak, Nifty surges to 10,735.