The Indian rupee strengthened by 4 paise to settle at 85.69 against the US dollar on expectations of an upcoming trade deal between India and the US.
The rupee opened at 85.62 and traded in the range of 85.69 and 85.53 during the day before closing at 85.69.
A Commerce Ministry team from India is set to visit Washington for trade talks to resolve differences in sectors like agriculture and automobiles, aiming for a comprehensive deal.
The dollar index declined while the Sensex and Nifty also saw losses, with FIIs buying equities worth ₹77 crore on Wednesday.