The rupee gained 16 paise in early trade and was last quoting at 62.24 against the dollar. The currency had staged a sharp recovery on Monday following a risk on rally in equities.
Much of the movement of the rupee has been linked to expectations on what the Federal Reserve would do in its forthcoming policy meet in December.
Hints of tapering or otherwise have been moving the rupee accordingly. Dealers say that the government and the RBI are now in a much better position to withstand currency shocks then they were in September when the rupee hit a historic low of 68.81 against the dollar. Check rupee rates here