The rupee inched higher by 9 paise to 64.95 against the US dollar in opening trade on Tuesday on better-than-expected inflation numbers and mild selling of the greenback by exporters amid sustained foreign capital inflows.
However, the dollar gains against most major global currencies overseas limited the gains for the domestic unit.
A 7.5 per cent growth in industrial output in January and selling of the American currency by exporters supported the rupee, forex dealers said.
Yesterday, the rupee ended higher by 13 paise to close at 65.04 against the US currency on the back of foreign fund inflows after sharp gains in equity markets and weakness in the dollar against global currencies.
Meanwhile, the benchmark BSE Sensex rose 44.58 points, or 0.13 per cent, to 33,962.52 in early trade on Tuesday.