The Indian rupee opened higher at 94.89 against the US dollar on November 2, gaining 6 paise from its previous closing level of 94.95. The recovery follows a sharp rebound on October 30, when the currency recovered from a record low of 95.28 against the dollar.

However, sustaining the recovery remains uncertain due to weakness in Asian currencies, declining global investor confidence and concerns over US technology stocks. These factors are putting pressure on emerging-market currencies, including the Indian rupee.

Lower crude oil prices and renewed foreign investment in Indian equities could provide some support to the domestic currency. As India depends heavily on crude oil imports, declining oil prices can help reduce dollar demand and ease pressure on the rupee.

Meanwhile, the Reserve Bank of India's net short dollar position in the forward market reached a record $240 billion in September, compared with $200 billion in August. Market participants expect the rupee to remain around the 95-per-dollar level, with global currency movements, crude oil prices and foreign investment flows influencing its direction.