The rupee rose by 17 paise to close at a two-week high of 74.74 against the US dollar on Tuesday tracking positive domestic equities and hopes of a COVID-19 vaccine.
At the interbank forex market, the domestic unit opened on a strong note at 74.79 against US dollar.
During the session, it touched an intra-day high of 74.73 and a low of 74.87 against the US dollar. The local unit finally settled at 74.74, up 17 paise over its previous close.
It had settled at 74.91 against the US dollar on Monday. Forex traders said positive domestic equities, foreign fund inflows and hopes of a COVID-19 vaccine supported the rupee.
A coronavirus vaccine created by the University of Oxford appears safe and induces a strong immune response within the body, scientists announced on Monday after the first phase of human trials.
In India, AIIMS-Delhi on Monday began recruiting volunteers for conducting human clinical trials of the indigenously developed COVID-19 vaccine candidate Covaxin.