US delaying new tariffs on Chinese electronics to December 15 helped investor's sentiments on Wednesday, analysts were quoted as saying by news agency Reuters.

Positive opening in domestic equity market, encouraging macro data and easing crude oil prices also supported the local unit. However, foreign fund outflows weighed on the rupee, the report said.

Domestic stock markets rose sharply on Wednesday. The S&P BSE Sensex index gained as much as 438 points to 37,396 and the NSE Nifty 50 index reclaimed the 11,050 level.

Government data on Tuesday showed that consumer inflation came in at 3.15 per cent in July, on the back of softening fuel and light prices, even as overall food prices moved up.

Brent crude futures, the global oil benchmark, fell 1.04 per cent to trade at $60.66 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 638.28 crore on Tuesday, according to provisional exchange data.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.03 per cent to 97.78.

The 10-year government bond yield was at 6.58 per cent in morning trade.

On Tuesday, the rupee had plunged 62 paise to close at a nearly six-month low of against the dollar in line with battered equities as global market turmoil and Argentine currency crash drove investors to safe havens.