After hitting fresh lows of 71.97 per US dollar, the Indian rupee on Wednesday, managed to recover over 20 paise to close at 71.75 per US dollar.

The currency hit a fresh record low of 71.97 intraday on the back of a surge in crude oil prices along with sharp rise in the US dollar as well.

The closing value of rupee is lower than the positive start it had to previous close. It opened higher by 18 paise at 71.40 per dollar.

“Brent surged from USD 70 per barrel to above USD 79 per barrel, a 13% rise in the last 4 weeks. This is keeping the rupee under pressure. Also, the current account deficit (CAD) is likely to rise further from the last quarter. Along with it, Reserve Bank of India isn’t seen to be keen on intervening anytime soon, pushing the rupee to a fresh low against the US dollar. RBI may release current account data next week for Q1 2018-19, and this is projected to be the highest in 4.5 years,” Abhishek Bansal, Founder & Chairman, ABans Group of Companies told Moneycontrol.

The US dollar rose broadly and investors shunned emerging market currencies as concerns about the US-China trade situation boosted safe-haven demand for the greenback

But experts also observed that the market had shown resilience to the rupee's weak move as well.

“The RBI is caught in the noise and letting the rupee have a freefall. With USD 400 billion of reserves, there should be some action to instill confidence. The market, on the other hand, has shown extreme resilience. As such, it was very top-heavy earlier and this kind of a correction is inevitable. Amazon has hit USD 1 trillion market cap, and we could be looking at stories in India which will hit USD 100 billion next,” Sanjiv Bhasin, EVP-Markets and Corporate Affairs at IIFL told Moneycontrol.

Going forward, the rupee could trade around 73-74 levels.

“The rupee may find minor resistance level near 72.25, but major resistance range is seen till 73.40-74.00 levels. Immediate support levels are seen between 70.20-69.00. Observing the recent price moves and the news flow, rupee is expected to trade higher, and any immediate relief is not seen unless the RBI intervenes, which is unlikely,” Bansal further told Moneycontrol.