The dollar index, which measures the US currency against a basket of six currencies, rose 0.07% to 101.59.
Domestic equities also ended lower. The Sensex fell 143.21 points to 73,709.69, while the Nifty declined 77.60 points to 22,811.35.
Foreign institutional investors, however, bought equities worth Rs 1,022.32 crore on a net basis on Wednesday, according to exchange data.
Garg said the rupee’s ability to sustain its recovery would depend on IPO-related inflows, RBI intervention, crude oil prices, foreign portfolio investment and movements in the US dollar.
(With inputs from agencies)