Extending its rising trend for the sixth straight session, the rupee moved up by 2 paise to 66.33 on persistent selling of dollars by banks and exporters on hopes of resumption of foreign capital inflows.
Weakness of dollar in the overseas market also boosted the rupee value against the dollar.
The Indian rupee resumed higher at 66.30 per dollar as against Monday's closing level of 66.35 at the Interbank Foreign Exchange market.
It moved in a range of 66.35 and 66.27 per dollar during the day before closing at 66.33, showing a marginal gain of two paise or 0.03 per cent.
The rupee has gained by 76 paise or 1.13 per cent in six trading days.
The dollar index was down by 0.12 per cent against a basket of six currencies in the late afternoon trade.
In New York, the euro strengthened against the dollar on Monday as a rout in crude-oil prices resumed, helping support the shared currency at the expense of its emerging- market rivals.
The dollar was largely unchanged against the yen and the euro in thin Asian trade in the afternoon trade on Tuesday, with fewer participants in the market ahead of the year-end holiday season.
While, Oil prices enjoyed rare gains in Asian early trade, with Brent crude bouncing from an 11-year low as investors await a closely watched US crude inventory report.
