The rupee on Wednesday received a boost from positive global factors amid expectations of more measures coming from the authorities to protect the currency.

At the forex markets, the unit gained 61 paise, which was its best single-day rise since March 2017. It closed at 72.38 against the US greenback with heavy dollar selling by banks. Weakness in the greenback in the global markets amid the softening of crude prices also supported its rise.

The dollar slipped to a near seven-week low against a basket of currencies. The dollar index declined to a low of 94.31, just above the two-month low level of 94.30. Incidentally, the gains came despite a poor close in the equity markets with the BSE Sensex falling over 169 points.

The currency opened higher at 72.71 against its record closing low of 72.98 on Tuesday and it touched a session high of 72.34. These gains came on talks that the government was readying a list of import items that could attract higher duty to protect the currency.

The central bank may open a window for oil marketing companies which would take off some demand for the greenback from the market.

Meanwhile, the RBI relaxed norms for companies in the manufacturing sector to raise overseas funds even as it allowed Indian banks to market masala bonds. These two steps were in line with measures announced on Friday.

``It has been decided, in consultation with the Government, to liberalise some aspects of the external commercial borrowings (ECB) policy including policy on rupee denominated bonds (Masala Bonds) ...,' the RBI said in a notification.

As per the revised policy, eligible ECB borrowers who are into manufacturing sector, will be allowed to raise ECB up to $ 50 million or its equivalent with minimum average maturity period of 1 year. The earlier average minimum maturity period was three years.

While dollar selling by exporters was seen, state-run banks likely on the behalf of the RBI also sold the greenback, raising the possibility that the central bank was guarding the 73 mark. On Tuesday, the domestic unit fell to a historic intra-day low of 72.99 before closing at a lifetime low of 72.98 due to global factors even as the disappointment of the measures announced by the Government last Friday persisted.