The rupee appreciated by 4 paise to settle at 85.62 (provisional) against the US dollar on Tuesday, supported by strong foreign capital inflows.
However, forex traders noted that further gains were limited due to mixed trends in domestic equities, rising global crude oil prices, and a firm US dollar against major currencies.
As per exchange data, foreign institutional investors (FIIs) were net buyers of Indian equities on Monday, investing Rs 1,992.87 crore.