The Rupee strengthened by 31 paise to 81.51 against US dollar in early trade on Tuesday due to weakness in the greenback in overseas markets and a rally in domestic equities.
However, rising crude prices in the international market restricted the gains of the Rupee, according to a PTI report.
At the interbank foreign exchange, the local currency opened sharply up at 81.66 against the Dollar, then gained further ground to 81.51, thereby registering a gain of 31 paise over its previous close. The Rupee had settled 42 paise lower at 81.82 against US dollar on Monday.
In the domestic equity market, the 30-share BSE Sensex was trading 1006.59 points or 1.77 per cent higher at 57,795.40 while its broader peer Nifty jumped 306.40 points or 1.81 per cent to 17193.75.
Foreign Institutional investors bought shares worth Rs 590.58 crore according to exchange data.
