Mumbai: The Indian rupee rose 9 paise to close at 85.57 against the US dollar on the back of strong foreign capital inflows.
However, a mixed sentiment in the domestic equity markets, a rise in global crude oil prices, and a stronger US dollar against major currencies capped further gains in the local unit, according to forex traders.
At the interbank foreign exchange, rupee opened at 85.62 and registered an intra-day peak of 85.51 and a low of 85.68 before settling at 85.57 against the greenback, up 9 paise from its previous close.
The local unit had settled at 85.66 against the US dollar on Monday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.15 per cent at 99.09.
Foreign institutional investors (FIIs) had purchased equities worth Rs 1,992.87 crore on a net basis on Monday, according to exchange data.
Brent crude, the global oil benchmark, rose 0.18 per cent to $67.16 per barrel in futures trade.