On Monday, the rupee hit a two-week high of 67.95 against the US dollar appreciating by 8 paise on sustained unwinding of the greenback by banks and exporters.
Domestic currency is supported after a tepid start due to the extremely bearish dollar overseas and robust capital inflows.
There is growing optimism ahead of the annual budget with firm policy measures to attract healthy foreign flows.
New US President Donald Trump's has imposed immigration curbs on seven predominantly Muslim countries causing the American dollar come under renewed pressure against most of its major rivals on heightened concerns about the impact of the new US administration's policies on trade and the economy.
In a four-day rise against the dollar, the rupee has strengthened by a good 25 paise. Foreign funds and overseas investors have infused $158.80 million during the week which also bolster sentiment. The US dollar index was trading slightly higher at 100.94 in late afternoon.
The Indian unit also hardened against the British pound and finished at 85.11 from 85.33 per pound and also rose against the euro to settle at 72.56 (72.76 before).However it fell back against the Japanese yen to settle at 59.22 per 100 yens from 59.15 last weekend.