Rupee rallies 25 paise to 74.59 against U.S. dollar

Brent crude futures, the global oil benchmark, were trading 0.90% lower at $95.97 per barrel

The rupee appreciated by 25 paise to 74.59 against the U.S. dollar on Wednesday due to a pullback in the greenback and crude oil prices after Western countries imposed several sanctions on Russia for sending troops into separatist-held regions in Ukraine.

At the interbank forex market, the local unit opened at 74.64 against the greenback and witnessed an intra-day high of 74.54 and a low of 74.73.

The rupee was quoted at 74.59 at 3.30 p.m., registering a gain of 25 paise over its previous close. On Tuesday, the rupee depreciated by 29 paise to close at 74.84 against the U.S. currency.

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, declined 0.17 per cent to 95.86.

Brent crude futures, the global oil benchmark, were trading 0.90% lower at $95.97 per barrel.

Investors hoped that Western sanctions on Russia after Moscow's troop movements near Ukraine border might soften Vladimir Putin's defiant tone and leave some room to avoid war.

Russian President Vladimir Putin on Monday signed decrees to recognise Ukraine's regions of “Donetsk and Luhansk People’s Republics” as “independent”, escalating the tension in the region and increasing fears of Moscow's invasion of Ukraine.