The rupee rose 12 paise to close at 81.67 (provisional) against the US dollar on Tuesday, as the US currency fell from its highs.
The local currency opened at 81.72 against the US dollar on the interbank foreign exchange market, reaching an intraday high of 81.64 and a low of 81.83.
The local unit eventually settled at 81.67, up 12 paise from its previous close.
The rupee fell 5 paise against the US dollar on Monday, closing at 81.79.
The rupee was also supported by a recovery in domestic equities and stronger Asian currencies.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, fell 0.35 percent to 107.46.
Global oil benchmark Brent crude futures advanced 0.80 per cent to USD 88.15 per barrel.
The 30-share BSE Sensex rose 274.12 points, or 0.45%, to end at 61,418.96, while the broader NSE Nifty rose 84.25 points, or 0.46 percent, to 18,244.20.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, offloading shares worth Rs 1,593.83 crore.
Source:FE