The rupee rose 13 paise to 82.57 per dollar in early trade on Tuesday, as the US currency retreated from recent highs.
Forex traders said that a positive trend in domestic equities, as well as new foreign fund inflows, boosted investor sentiment.
The domestic unit opened at 82.59 against the dollar on the interbank foreign exchange, then rose to 82.57, a 13-paise increase from its previous close.
In early trade, the rupee fell to a low of 82.61 against the US dollar.
The rupee fell 12 paise to close at 82.70 against the US dollar on Monday.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, dropped 0.16 percent to 103.18.
Brent crude futures fell 0.70 percent to USD 86 per barrel, the global oil benchmark.
In the domestic equity market, the 30-share BSE Sensex was trading 315.74 points or 0.52 per cent higher at 60,747.58. The NSE Nifty gained 37.75 points, or 0.21 percent, to 17,808.65.
According to exchange data, Foreign Institutional Investors (FIIs) were net buyers in the capital market on Monday, purchasing shares worth Rs 1,322.39 crore.
“Global investors will now take cues from the US consumer inflation data due after Asian market hours on Tuesday.
Domestically, retail inflation again exceeded the Reserve Bank’s upper tolerance limit in January, reaching a three-month high of 6.52 percent, owing primarily to higher prices in the food basket, including cereals and protein-rich items.
Source:BS