Forex traders said that easing crude oil prices and fresh foreign capital inflows helped the Indian currency rise for the sixth day.
Investor sentiment revived after China and the United States said they will resume trade talks.
Gains in domestic equity market also supported the local unit and helped it recoup some of its losses of the previous session.
Forex traders said though the US Federal Reserve cut the benchmark lending rate on Wednesday for the first time in more than a decade.
Forex traders said the rupee is trading in a narrow range as market participants are awaiting cues from the outcome of the Federal Open Market Committee on Wednesday.
Forex traders said the rupee is trading in a narrow range as market participants are awaiting cues from the Federal Open Market Committee meeting on July 31.
Forex traders said rising Brent crude prices, cautious opening in domestic equities and foreign fund inflows weighed on the local unit.
Forex traders said that while heavy buying in domestic equity market supported the domestic unit, foreign fund outflows and rising crude oil prices weighed on local currency.
Forex traders said the rupee is expected to trade in a narrow range ahead of the much crucial European Central Bank policy statement.
Forex traders said, strengthening of the US dollar vis-a-vis against other currencies overseas kept pressure on the Indian rupee.
Forex traders said the rupee is trading in a narrow range ahead of the release of retail inflation and factory output data.
Jerome Powell told a congressional committee that flagging global growth, trade tensions continue to weigh on US economic outlook, the central bank ready to 'act as appropriate' to boost growth.
Amid unabated foreign fund outflows and rising crude oil prices, the Indian currency fell.
The rupee came under pressure following heavy selling in domestic equities amid outflow of foreign funds.
Weakening of the greenback in the overseas market, easing crude oil prices and positive opening in domestic equities supported the Indian currency.