Indian rupee on Tuesday strengthened marginally against the US dollar tracking as risk appetite crept back into equity markets, with investors on alert for Iran’s next move in the showdown with the U.S.

Rupee closed at 71.83 a dollar, up 0.15% from Monday's close of 71.94. The Indian unit had opened at 71.74.

Yield on the 10-year government bond closed at 6.554% compared with its previous close of 6.571%.

Year to date, the rupee has weakened 0.62%, while foreign investors bought $384.5 million in Indian equities and sold $370.50 million in debt.

Benchmark Sensex index gained 0.47% or 192.84 points to close at 40869.47 points. Year to date, the index has lost 0.93%.

Asian currencies closed mixed. Philippines peso gained 0.51%, Indonesian rupiah 0.48%, South Korean won 0.46%, China renminbi 0.44%, China offshore 0.43%, Malaysian ringgit 0.28% and Taiwan dollar 0.12%. However, Thai Baht lost 0.17%, Hong Kong dollar 0.05%, Japanese yen 0.04% and Singapore dollar 0.007%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 96.751, up 0.08% from its previous close of 96.671.

(Bloomberg contributed this story)

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