In early trading on Tuesday, the rupee strengthened by 3 paise to 82.81 versus the US dollar, helped by foreign capital inflows and a bullish trend in local markets.
Due to the strong dollar's overall position, according to forex dealers, the rupee is trading in a constrained range.
The local unit began trading at 82.82 versus the dollar on the interbank foreign exchange before rising to 82.81, up 3 paise from its previous finish.
The rupee's closing value versus the US dollar on Monday was 82.84.
IFA Global Research Academy stated in a research note that the rupee is anticipated to trade in the 82.65-82.95 range with sideways price movement and that the Reserve Bank of India is likely to continue supporting the local currency.
The dollar index, which measures the strength of the dollar against a basket of six other currencies, increased 0.07 percent to 103.27.
The international oil benchmark, Brent crude futures, increased 0.36 percent to USD 76.26 a barrel.
The 30-share BSE Sensex rose 217.53 points or 0.35 percent to 62,181.21 on the local equities market. The NSE Nifty index as a whole dropped 83.50 points or 0.46 percent to 18,397.90.
According to exchange statistics, Foreign Institutional Investors (FIIs) were net purchasers on Monday in the capital market, buying shares worth Rs 922.89 crore.