The Indian rupee strengthened by to hit a four-month high against the US currency in opening trade on Tuesday on increased dollar selling by exporters amid expectations of fresh capital inflows by foreign funds.
At the Interbank Foreign Exchange (Forex) market, the domestic unit gained 26 paise to quote at 47.25 a dollar, a level not seen since June 5.
The dollar's weakness against major currencies also supported the Indian rupee. The rupee closed 23 paise higher at 47.51/52 in theprevious session. Dealers said increased dollar selling by exporters supported the rupee.
