The rupee surged 37 paise to settle at 73.68 against the US dollar on Tuesday, buoyed by foreign fund inflows into domestic equities.
Besides, positive developments on COVID-19 vaccine front, improved domestic macro-economic data and weakness of the American currency against key rivals also supported the rupee.
At the interbank forex market, the domestic unit opened at 73.93 against the US dollar and witnessed an intra-day high of 73.44 and a low of 73.93.
The local unit finally closed at 73.68 against the American currency, registering a rise of 37 paise over its previous close.
On Friday, the rupee had settled 17 paise lower at 74.05 against the US dollar.
Forex market was closed on Monday on account of Guru Nanak Jayanti.
“Indian rupee appreciated on Tuesday on the back of weakness in dollar and rise in domestic markets. Market sentiments improved on optimism over positive developments in COVID-19 vaccine,” said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.