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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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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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Traders said sustained foreign fund inflows into the domestic equity markets also helped the local unit.
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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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The rupee on Tuesday appreciated 16 paise to settle at 74.46 against the US dollar.
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The dollar index, which gauges the greenback's strength against a basket of six currencies, dipped 0.15 per cent to 92.50.
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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.
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The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 93.02.
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Surging crude oil prices in the overseas market added pressure to the domestic unit, dealers said.
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At the interbank forex market, the domestic currency opened up at 74.04 against the US dollar, then edged slightly lower to 74.05 in early deals, a rise of 10 paise over its last close.
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The dollar index, which gauges the greenback's strength against a basket of six currencies, dipped 0.06 per cent to 92.16.
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Reliance Securities in a report said that the uptick in the rupee was supported by foreign portfolio flows.
