The rupee rose 22 paise to hit a 3-week high of 64.20 against the dollar in the evening trade on persistent selling of the greenback by banks and exporters on the back of lower dollar overseas.
According to a forex dealer, strong equity market also boosted the rupee value.
The rupee resumed higher at 64.41 against the dollar against yesterday’s closing level of 64.44 per dollar at the Interbank Foreign Exchange (Forex) market and firmed up further to a 3-week high of 64.20, before quoting at 64.28 per dollar at 4.25 pm local time, showing a gain of 19 paise.
The domestic currency hovered in a range of 64.25 per and 64.41 per dollar during evening trade.
The euro steadied on Tuesday, pausing after a rally sparked by the first-round results of the French presidential election, while the Canadian dollar fell after the US slapped duties on Canadian softwood lumber.
The euro last traded at $1.0866, off Monday's peak of around $1.0940, its highest level since November 10, after centrist Emmanuel Macron won the first round of the French presidential elections.
Meanwhile, the benchmark BSE index ended 287.40 points or 0.97 per cent higher at 29,943.24, its highest close since April 5.