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Around 1.55 p.m., it was trading at 46,030.43, higher by 421.92 points or 0.93 per cent from its previous closed.
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Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17 per cent down at 90.81.
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Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was up 0.07 per cent to 90.85.
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The Reserve Bank of India on Friday maintained status quo for the third time in a row and kept benchmark lending rate unchanged at 4 per cent.
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In volatile trade, the local unit also touched 73.89 against the American currency.
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At the interbank forex market, the domestic unit witnessed a highly volatile trading session. It opened at 73.45, pared the gains and finally closed at 73.81 against the greenback.
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The dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.17 per cent to 91.15.
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The broader NSE Nifty was down by 15.30 points or 0.12 per cent at 13,093.75 in opening trade.
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Besides, positive developments on COVID-19 vaccine front, improved domestic macro-economic data and weakness of the American currency against key rivals also supported the rupee.
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The dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.04 per cent to 91.95.
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Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.07 per cent to 91.93.
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Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.16 per cent to 92.08.
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The dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.13 per cent to 92.26.
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IndusInd Bank was the top gainer in the Sensex pack, surging around 5 per cent, followed by Bajaj Finserv, Bajaj Finance, Reliance Industries, ONGC, NTPC and Tata Steel.
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The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.16 per cent to 92.46.
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PowerGrid was the top laggard in the Sensex pack, shedding over 2 per cent, followed by Axis Bank, ICICI Bank, HDFC duo, Asian Paints and Bharti Airtel.
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After touching its lifetime intra-day high of 44,215.49, the 30-share BSE benchmark ended 227.34 points or 0.52 per cent higher at its record closing of 44,180.05
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The rupee on Tuesday appreciated 16 paise to settle at 74.46 against the US dollar.
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PowerGrid was the top gainer in the Sensex pack, rising over 1 per cent, followed by SBI, M&M, L&T, IndusInd Bank, ICICI Bank, Bajaj Finance and ONGC.
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The rupee was trading in a narrow range on Friday considering the weak demand for riskier assets on the occasion of Dhanteras.
