The rupee gained 15 paise to touch a four-week high of 45.55 against the dollar in early trade on Tuesday, on sustained capital inflows from foreign funds.
The Indian currency had gained 13 paise, to Rs 45.70/71, against the dollar in the previous session.
Forex dealers said sustained foreign capital inflows into Indian equities was mainly responsible for the rupee's rise, which is at its highest since May 18.
Besides, the dollar's weakness against other currencies also kept the rupee sentiment firm, they added.
Meanwhile, the Bombay Stock Exchange index Sensex crossed 20,000 points level by gaining 135.42 points, to 20,041.52, in the opening trade on Tuesday, for the first time since January 17, 2008.
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