Rupee traded stronger against the dollar on Tuesday afternoon at 54.79/80 versus its previous close of 54.99/55.00 tracking gains in the domestic share market after U.S. reaches a deal on the "fiscal cliff".
The U.S. Senate on Tuesday, two hours after a December 31 deadline had lapsed, approved legislation aimed at averting the "fiscal cliff" by stopping most tax hikes and across-the-board spending cuts that were due to begin with the new year.
Domestic shares traded 0.9 per cent higher on optimism after the U.S. deal nearing a closure.
Traders expect the pair to move in a 54.60 to 54.90 range in the rest of the session.
Copyright @ Thomson Reuters 2012