The rupee settled just 3 paise higher at 95.33 (provisional) against the US dollar on Wednesday, as hopes of a quick US-Iran agreement and reopening of the Strait of Hormuz faded.
Forex traders said Brent crude is moving towards $90 per barrel amid risk aversion in global markets.
At the interbank foreign exchange, the rupee opened at 95.40 against the greenback and traded in a range of 95.24-95.43 during the session. It eventually settled at 95.33 (provisional), higher by 3 paise from its previous close.
On Tuesday, the rupee declined 6 paise to settle at 95.36 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.85, up 0.03 per cent, largely on the back of oil-related uncertainty.
