The rupee rose 3 paise to settle at 89.65 (provisional) against the US dollar on Tuesday on the back of a weaker greenback.
However, a rise in global crude oil prices, coupled with foreign capital outflows, prevented sharper gains in the local unit, according to forex traders.
At the interbank foreign exchange, the rupee opened at 89.67 and traded in the range of 89.59-89.85 before settling at 89.65 (provisional) against the greenback, up 3 paise from its previous close.
The rupee on Monday pared initial gains to settle slightly down by 1 paisa at 89.68 against the US dollar.
Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said the rupee gained on Tuesday on a weak US dollar index. -- PTI