The rupee on Tuesday gained 13 paise to settle at one—week high of 61.94 against the US dollar amid positive stock markets and signs of continued capital inflows.
The rupee was aided by sustained dollar selling by exporters, weak dollar overseas ahead of the release of U S consumer confidence and home price data later in the day.
The dollar index was down by 0.12 per cent against the basket of six major global currencies.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced higher at 61.95 a dollar from previous close of 62.07.
It later moved in a tight range of 61.88 and 62.04 before settling at 61.94, up by of 13 paise.
In three straight days, the rupee has risen by 29 paisee.