Mumbai: The rupee strengthened against the US dollar on Wednesday after a news report said the Reserve Bank of India was studying off-market swap deals for oil retailers.

The rupee ended at 72.38 to a dollar, up 0.81% from its Tuesday’s close of 72.97. The home currency opened at 72.70 per dollar and touched a high of 72.35.

“The central bank is studying the option of off-market swap deals to meet dollar demand of oil companies,” television channel ET Now reported.

On Tuesday, the rupee touched an all-time low of 72.97 to a dollar as crude oil surged amid concerns about Iranian supply and a report that Saudi Arabia was comfortable with Brent prices above $80 a barrel.

The 10-year gilt yield closed at 8.072% on Wednesday, below its previous close of 8.14%. Bond yields and prices move in opposite directions

The rupee has weakened 12.2% in 2018, and foreign investors have sold $771.30 million and $6.48 billion in the equity and debt markets, respectively.

The Sensex fell 0.45%, or 169.45 points, to 37,121.22. Since January, it has gained 9.1%.