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The spot rupee closed at 130.83/88 per dollar, its highest since Oct. 25 and slightly firmer than Tuesday's 130.85/95. It has gained nearly 0.3 percent in four straight sessions.
Dealers said remittances and foreign buying in rupee bonds aided the gains.
Central Bank Governor Ajith Nivard Cabraal said on Tuesday that the rupee was seen steady at current levels with most inflows being remittances.
Cabraal had told Reuters earlier that the central bank would intervene to keep the rupee stable if there was excess volatility after it hit a seven-week low on importer dollar demand despite intervention by state banks.
The rupee has gained 3.32 percent since it hit a record low of 135.20 on Aug. 28.