The rupee appreciated 2 paise to 83.38 against the US dollar (23.16 against UAE dirham) in early trade on Tuesday, tracking a weak American currency and inflow of foreign funds in the domestic equities.
Forex traders said positive sentiment in the domestic equity markets and lower crude oil price also favoured the Indian currency.
At the interbank foreign exchange, the rupee opened at 83.37 against the dollar and then touched 83.38, registering a gain of 2 paise over its previous close.