The rupee moved in a range of 70.85-71.35 against the US currency before shutting shop with a gain of 13 paise. On Tuesday, the rupee had shed 62 paise to end at a near six-month low of 71.40 against the dollar.

"The Indian rupee has now become Asia's worst performing currency so far this month, Chinese yuan depreciated amid trade worries and foreign investor outflows," said VK Sharma, head-PCG and capital market strategy at HDFC Securities.

Oil prices declined on Wednesday, almost erasing the previous session's sharp gains after the US said it would delay tariffs on some Chinese products. Brent futures - the global benchmark for crude oil - were last seen trading down 3.4 per cent at $59.22 a barrel.

On Tuesday, the Brent futures had risen 4.7 per cent in their biggest percentage gain in a day since December.

Foreign institutional investors (FIIs) were net buyers of Indian shares on Wednesday. They bought shares worth Rs 1,614.63 crore, according to provisional data from the National Stock Exchange. Domestic institutional investors also bought shares worth Rs 1,619.82 crore.

Losses in the dollar overseas also supported the rupee.

The dollar index - which gauges the US currency against six major peers - was last seen down 0.11 per cent at 97.7040.

The rupee has emerged the worst performer among Asian currencies.

It has depreciated over 3.6 per cent against the greenback so far this month, set for its second-worst monthly loss since September 2013.