The Indian rupee edged up on Tuesday supported by dollar inflows, even as most Asian currencies weakened on the back of elevated US bond yields.
The rupee was at 22.611 against the UAE dirham as of 8.50am, marginally stronger compared with its previous close at 22.619.
The dollar index was steady near 104.4 while the 10-year US Treasury yield was at 4.29 per cent. The yield has risen 34 basis points in February so far, as hopes of early and sharp rate cuts by the Federal Reserve fade.
Mild dollar inflows helped lift the rupee in early trading, a foreign exchange trader at a state-run bank said.
While inflows have continued since last week, dip-buying demand (on the dollar-rupee pair) is also present, which has kept the pair in a tight range, the trader added.
Despite some weakness in equity flows, debt inflows into India have offered support to the rupee in recent sessions, traders said.