The Indian rupee rose for the second straight session on Tuesday, gaining as much as 6 paise to Rs 69.80 against the US dollar amid sustained fund inflows by foreign investors after exit poll results predicted a clear majority for the BJP-led National Democratic Alliance (NDA) government.
Adding to it, firm cues from Indian equity markets also gave a boost to the forex market.
However, a strong US dollar against a basket of other Asian currencies and rise in crude oil prices in the international market restricted rupee's upward move.
At the Interbank Foreign Exchange market, the domestic currency opened marginally lower at 69.75 against the US dollar. The local unit rose 6 paise to Rs 69.80 in early trade against its previous close of Rs 69.74.
The rupee has gained 49 paise to close at Rs 69.74 against the US dollar on Monday after exit polls showed Narendra Modi-led NDA government was set to return to power on May 23. Positive equity market sentiment also helped the domestic currency.
Extending its rally, the Indian equities were trading higher on Tuesday, with BSE Sensex trading at 39,451.71, up by 99.04 points, or by 0.25 per cent, and the NSE Nifty was up by 30.35 points, or by 0.26 per cent, at 11858.6. In the opening trade, Sensex gained 207 points to hit an all-time high of 39,560, breaching its previous record of 39,487 hit on April 18 this year. Nifty too rose 49 points to hit a fresh all time high of 11877.25, breaking its record high level of 11,856.Meanwhile, crude oil prices edged up on Tuesday on escalating tensions between the United States and Iran. Brent Crude surged to USD 73/bbl. Brent crude futures, the international benchmark for oil prices, were at $72.03 per barrel at 0118 GMT, up 6 cents, or 0.1 percent, from their last close.
Edited by Chitranjan Kumar