The Indian rupee appreciated against the U.S. dollar on Wednesday, after the Reserve Bank of India's Monetary Policy Committee hiked the repo rate by 35 basis points.

The local currency opened at 82.67, depreciating 6 paise against Tuesday's close of 82.61.

During the RBI's policy announcement, the rupee reversed all its losses to appreciate to as much as 82.40 from an intraday low of 82.76 earlier.

It ended 0.16% higher at 82.48.

The 10-year bond yield also spiked 6 bps to 7.29%.

"Having broken past a key resistance level of 81.9 that had stood for a month, the prospects of a new high need to be considered [for the dollar-rupee]. This brings 84.8 into the picture, assuming that 83.26 will be cleared," said Anand James, chief market strategist at Geojit Financial Services in a note to clients.

"Alternatively, we may see the present run of upsides for the dollar-rupee ending at 82.8, which calls for the downside marker to be placed at 82.32."