The rupee closed at 82.9350 per U.S. dollar, 0.2% stronger than its close of 83.1075 on Monday.
"Inflows for initial public offerings and presence of the central bank around 83.10 levels ensured some strength in the rupee after nearly two weeks of fall," said Anil Bhansali, head treasury at Finrex Treasury Advisors.
The easing of the dollar index also aided in helping the rupee strengthen past the 83 mark, a trader with a private bank said.
"A large foreign bank was mainly on the selling side," the private bank trader added.
India's central bank ensured the rupee did not depreciate significantly despite immense dollar-buying pressure from oil companies, Bhansali said.
Persons:
Francis Mascarenhas, Anil Bhansali, Vishnu Prakash R, Jerome Powell's, Jackson, Bhansali, Swati Bhat, Janane
Organizations:
REUTERS, Rights, Treasury, Companies, Aeroflex Industries, Vishnu, U.S, Traders, Jackson, Thomson
Locations:
Mumbai, India