The rupee rose 20 paise to 74.45 against the US dollar in early trade on February 1, supported by positive domestic equities.
However, the gains in the rupee were restricted amid a rise in crude oil prices.
Finance Minister Nirmala Sitharaman will soon present the Union Budget 2022-23 in Parliament.
At the interbank foreign exchange, the rupee opened at 74.53 against the US dollar, then hit a high of 74.45, registering a rise of 20 paise over the previous close.
In the previous session, the rupee had closed at 74.65 against the greenback.
Sriram Iyer, senior research analyst at Reliance Securities, said investors’ attention has now turned to the Union Budget for the next financial year, where the borrowing numbers and fiscal glide path will be revealed.
Most Asian peers have made a strong start this Tuesday and sentiments will help, Mr. Iyer said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% lower at 96.59.
On the domestic equity market front, the 30-share Sensex was trading 856.32 points or 1.48% higher at 58,870.49, while the broader NSE Nifty was trading 240.30 points or 1.39% higher at 17,580.15.
Global oil benchmark Brent crude futures rose 1.31% to $91.21 a barrel.
Foreign institutional investors were net sellers in the capital markets on Monday as they sold shares worth Rs 3,624.48 crore, according to stock exchange data.
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