At the interbank foreign exchange, the domestic unit opened at 82.06 against the dollar and then rose to 81.96, registering a gain of 10 paise over its previous close. On Wednesday, the Rupee closed at 82.06 against the U.S. currency.

Traders said investors were cautious as they awaited inflation data from the U.S. expected later in the day. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.05% to 101.55.

Brent crude futures, the global oil benchmark, declined 0.72% to $76.88 per barrel. Meanwhile, India’s inflation data, due later in the week, will provide cues on the Reserve Bank of India’s (RBI) next rate hike moves, traders said.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they purchased shares worth ₹1,942.19 crore, according to exchange data.