The Indian rupee opened higher by 6 paise at 71.21 per dollar against Tuesday's close of 71.27/$.
The local unit on Tuesday closed higher by 11 paise at 71.27 against the US dollar, tracking heavy buying in domestic equities and easing crude prices.
On the economy front, all eyes are now on the Reserve Bank of India as it gets set to announce the last policy for this financial year tomorrow.
Besides, foreign institutional investors (FIIs) bought shares worth Rs366.21cr, while domestic institutional investors (DIIs), too, bought shares worth Rs601.86cr, as per provisional data available on the NSE showed.
Meanwhile, Asian markets were trading higher in Wednesday morning trade following overnight rallies on Wall Street and in Europe
On the economy front, the Caixin/Markit services purchasing managers’ index (PMI) slowed to 51.8 last month from 52.5 in December but was still higher than an 8-month low hit in October.
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