Forex traders said the rupee is trading in a narrow range ahead of the monthly expiry and the US Fed's policy decision.
At the interbank foreign exchange, the domestic unit opened at 74.44 against the dollar, then inched higher to 74.43, registering a gain of 4 paise over its previous close.
On Tuesday, the rupee had settled at 74.47 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent up at 92.46.
"Investors could refrain themselves from taking large positions ahead of monthly expiry and Fed decision tonight," Reliance Securities said in a research note.
The note further said that regional currencies were flat to marginally stronger against the dollar early Wednesday morning and could cap depreciation bias.
On the domestic equity market front, BSE Sensex was trading 318.40 points or 0.61 per cent lower at 52,260.36, while the broader NSE Nifty declined 96.40 points or 0.61 per cent to 15,650.05.
Meanwhile, foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 1,459.08 crore, as per exchange data.
Global oil benchmark Brent crude futures advanced 0.47 per cent to USD 74.83 per barrel.