The rupee was trading higher by two paise at to 61.15 against the US dollar in early trade on Tuesday.
The forex market which saw increased demand for dollars in the morning, saw lower demand later.
The rupee had weakened by 2 paise to end at 61.17 in Monday's trade on late dollar demand from importers amid fresh capital outflows.
Meanwhile, benchmark indices were trading higher led by sharp gains in the stock of Tata Motors. Check currency rates here