The Indian rupee gained 13 paise in morning trade ahead of the Reserve Bank of India (RBI)’s credit policy, to hit a four-month high of 66.07 to the US dollar.
Fresh selling of the US currency by exporters and banks was seen ahead of the bi-monthly monetary policy announcement by the RBI, traders said.
On Monday, the rupee had gained 5 paise to the dollar to close at 66.21 to the dollar, its sixth consecutive day of gains.
Meanwhile, there was weakness in stock markets ahead of the policy, with the BSE Sensex down 150 points or 0.6% at 25,248.97 and the wider NSE Nifty50 index was trading 48 points (0.6%) lower at 7,710.35.
Adani Ports was the biggest loser, down almost 3% and Bharti Airtel and ICICI Bank were also down 2.5%. Most automobile, software services and pharma stocks were also trading in the red.