The rupee ticked higher by 5 paise to 69.67 against the US dollar on Wednesday amid weakness in the greenback and easing crude oil prices. Strong foreign institutional investor inflows and higher domestic equity markets improved sentiments for the rupee, forex dealers said.
At the interbank foreign exchange, the domestic unit opened almost flat at 69.70 against the dollar and moved 5 paise higher to 69.67 in early trade.
The rupee had appreciated by 2 paise to 69.72 against the US dollar in the previous session.
The US currency was trading lower in overseas market as the dollar index was down by 0.04 per cent to 98.02 against its six global rivals.
Brent crude, the global benchmark, was trading lower by 0.55 per cent to 71.78 per barrel.
Stock markets started Wednesday's session on a higher note, with the Sensex rising as much as 190.42 points to 39,160.22 in early trade. The Nifty rose p 44.8 points to 11,753.90 at the strongest level in morning. The benchmark indexes advanced after swinging between gains and losses in the first few minutes of trade.
Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,185.44 crore on Tuesday, provisional exchange data showed.
A report by Goldman Sachs has suggested that the dollar-rupee pair would trade near the 69 level in the next three months if the official election outcome bear out the exit poll trends.