The rupee opened 14 paise higher at 69.75 on Tuesday amid firm Asian equities and rise in crude oil prices.
The domestic unit on Monday advanced by 25 paise to close at 69.89, in line with a strong rally in domestic equities, reflecting positive investor sentiments amid hopes that the incumbent NDA government will get the second term.
Besides, sustained foreign fund inflows also helped the rupee trade higher.
"A disappointing number could keep the rupee under pressure in the latter half of the session. Today, USD/INR pair is expected to quote in the range of 69.50 and 70.20," said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL).
On the global front, the pound jumped in the early trade after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament on a divorce agreement. Asian stocks, too, inched higher.
The dollar index, which measures the greenback against a basket of rivals, shed 0.18 per cent to 97.034. However, the dollar gained against the yen, adding 0.12 per cent to 111.31, Reuters reported.