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At the Interbank Foreign Exchange (Forex) market, the Indian rupee strengthened by 12 paise to 46.60 a dollar. The rupee had ended 19 paise lower at 46.72/73 in Monday's trading.
Forex dealers said dollar's losses against other major units and dollar selling by exporters, mainly supported the rupee's sentiment.
The American currency remained this morning as markets awaited signals from the US Federal Reserve after its two-day policy meeting, they added.
Meanwhile, the Bombay Stock Exchange index Sensex had ended 21.48 points lower at 17,097.55 on Monday.
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