The Indian rupee appreciated 39 paise to 94.89 against the US dollar in early trade on Wednesday, supported by softer crude oil prices after signs of progress in US-Iran negotiations and a pause in planned military strikes.
Market participants are also keeping a close watch on the Reserve Bank of India's monetary policy decision, which is expected to provide further direction to the currency and financial markets.
In the interbank foreign exchange market, the rupee opened at 94.90 and strengthened further to 94.89, compared with its previous close, marking a gain of 39 paise.