The rupee wiped off its early losses and was trading strong at 53.11 against the dollar at 4.30 p.m. local time.
The domestic unit opened lower at 53.40 against the dollar on weaker euro and weak domestic equity market. On Monday, it fell from its three-and-a-half week high to close at 53.28.
The Indian currency is likely to gain on stronger inflows expected from the share sale of PSUs like MMTC and SAIL in February and March.
However, analysts see no further room for appreciation following looming concerns of current account and fiscal deficit.
