The Indian rupee on Wednesday rose by six paise to settle at 49.01/02 against the US dollar on sustained selling of the American currency by exporters amid gains in local stocks.
Forex dealers said renewed capital inflows also helped the rupee sentiment, while firm dollar overseas capped it to certain extent.
The local unit moved between 48.83 and 49.03 at the Interbank Foreign Exchange (Forex) market before settling higher by six paise at 49.01/02. It had gained 15 paise on Tuesday.
Meanwhile, the BSE benchmark index Sensex on Wednesday closed modestly up by 21.56 points at 17,752.68.