The rupee rose 5 paise to 77.52 against the US dollar in early trade on May 25, as a firm trend in domestic equities boosted investor sentiment.
However, a rise in global crude oil prices and unabated outflow of foreign capital limited the appreciation bias in the local unit, forex traders said.
At the interbank forex, the rupee opened at 77.54 against the US dollar, then gained some more ground to trade at 77.52, registering a rise of 5 paise over the previous close. In the initial deals, it was trading in the range of 77.54 to 77.51.
In the previous session, the rupee had closed at 77.57 against the US currency.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 per cent higher at 101.92.
On the domestic equity market front, the 30-share Sensex was trading 242.62 points or 0.45 per cent higher at 54,295.23 points, while the broader NSE Nifty climbed 68.85 points or 0.43 per cent to 16,194.
Global oil benchmark Brent crude futures rose 1.20 per cent to $114.92 a barrel.
Foreign institutional investors remained net sellers in the capital markets on Tuesday as they sold shares worth Rs 2,393.45 crore, according to stock exchange data.