The rupee snapped its five-day losing trend against the US currency, ending higher by 20 paise to 63.64 per dollar, on fresh selling of greenback by banks and exporters on hopes of a revival in foreign capital inflows.
The rupee opened higher at 63.76 per dollar at the Interbank Foreign Exchange as compared to 63.84 previously and firmed up further to 63.63 before ending at 63.64 per dollar, showing a gain of 20 paise.
The rupee had gained 32 paise or 0.50 % in the last five trading days. The domestic unit moved in a range of 63.80 and 63.63 per dollar during the day.
The dollar index was trading higher by 0.21 % against its major global rivals on Tuesday.
In overseas markets, the euro on Tuesday narrowed losses against the US dollar with investors keeping watch on developments in Greece. Greece's bailout programme is expected to expire on Tuesday.
As well, the debt-burdened country was expected to miss a 1.6-billion-euro (USD 1.7 billion) debt repayment due to the IMF due the same day.
Meanwhile, the benchmark Sensex snapped its 2-day losing streak, recovering 136 points or 0.49 % to close at 27,780.83 on the back of higher Asian cues.