The rupee appreciated by 29 paise to close at 75.66 against the US dollar on Tuesday tracking weakness in the American currency as easing of Covid-19 lockdown measures fuelled growth optimism.
Forex traders said weakness in the US dollar against major world currencies overseas and easing of lockdown restrictions across the world boosted investor sentiment and supported the local unit.
At the interbank foreign exchange, the rupee opened higher at 75.69 and moved in a range of 75.62 to 75.74 in day trade. The rupee finally ended at 75.66, registering a rise of 29 paise over its previous close. On Friday, rupee had settled at 75.95 against the US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.44 per cent down at 99.42.