MUMBAI: The Indian rupee was trading higher versus the U.S. currency on Wednesday as exporters sold dollars, allowing the local currency to withstand a rise in oil prices.

The rupee was trading at a session-high of 79.7100 per U.S. dollar at 0514 GMT, compared with 79.8625 in the previous session.

The rupee has been hovering in a narrow trading range just above the 80 level, thanks to the Reserve Bank of India's interventions amid deteriorating risk sentiment.

"The range for the day, as RBI ensures to keep the rupee within 80 levels, is 79.70 to 80.00," said Anil Bhansali, head treasury at Finrex Treasury Advisors.

"Exporters may keep selling (dollars) above 79.90, while importers may buy any good dips (on USD/INR pair) they get."

The rupee has managed to avoid reaching a new record low despite the broader dollar index surging to 109 from 105 in the last two weeks. A combination of foreign equity inflows and RBI intervention bets have helped the rupee.

Brent crude futures climbed almost 4% on Tuesday. Higher oil prices tend to hurt the local currency as India is a large importer of crude.

Traders reckon Federal Reserve Chair Jerome Powell's comments on Friday at the central bank symposium in Jackson Hole, Wyoming could push the rupee out its narrow trading range.

"At Jackson Hole, the Fed is likely to emphasize its commitment to price stability, even at the risk of recession," BofA Securities said in a note.

"Powell is likely to say the pace of hikes could slow, while emphasizing restrictive policy and no quick pivot to cuts."

India's main stocks gauge, the BSE Sensex, was almost flat after opening lower. (Reporting by Nimesh Vora; Editing by Saumyadeb Chakrabarty)