Besides, optimism ahead of index of industrial production (IIP) numbers for December and retail inflation for January, and the dollar weakening against some other currencies overseas, also supported the rupee, forex dealers said.
A positive opening in the domestic equity market gave the uptrend some momentum, they added.
The rupee opened lower at 71.21, but recovered to trade 6 paise higher at 71.12 against the dollar.
The benchmark BSE Sensex rose 22.20 points, or 0.06 per cent, to 36,417.23 in early session Tuesday.
On Monday, the rupee had ended higher by 13 paise to close at 71.18 against the dollar on easing crude oil prices, even as the greenback strengthened vis-a-vis other major currencies.