MUMBAI: The rupee appreciated by 32 paise to 71.70 against the US dollar in early trade on Tuesday.
On Monday, the rupee had declined by 36 paise to close below the 72 level against the US currency.
At the interbank foreign exchange on Tuesday, the rupee opened at 71.70, registering a rise of 32 paise over its previous close of 72.02.
The domestic unit pared some gains and was trading at 71.85 against the dollar at 1001 hrs.
According to provisional exchange data, Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 752.90 crore on Monday.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.08 per cent to 98.00.
Brent crude futures, the global oil benchmark, rose 0.51 per cent to trade at USD 59.00 per barrel.
Domestic bourses opened on a positive note on Tuesday with benchmark indices Sensex trading 83.20 points higher at 37,577.32 and Nifty up 45.80 points at 11,103.65.
The 10-year government bond yield was at 6.44 per cent in morning trade.
With inputs from PTI