The Indian rupee closed modestly stronger on Monday as a softer dollar gave Asian currencies some breathing room ahead of U.S. President-elect Donald Trump's inauguration later in the day.

The Indian rupee opened strong on Tuesday morning as compared to the all-time low it tasted during the previous session. At the time of filing this report, the rupee traded at 85.75 against the US dollar,

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.30% at 109.02.

The Indian rupee is likely to kick off a pivotal week on a slightly positive note, assisted by the recovery of the Chinese yuan in the lead-up to Donald Trump's inauguration.