The Indian rupee rose to its strongest level in six weeks on Tuesday. Foreign portfolio inflows linked to the Jio Platforms IPO helped the currency recover. A trader at a state-run bank said, "Foreign banks have been on offer and the next support level could be around 94.30."

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The Indian rupee rose to its strongest level in six weeks on Tuesday, as foreign portfolio inflows related to Jio Platforms' IPO helped the currency extend a recovery spurred by a bevy of policy measures last week.

The rupee rose to a peak of 94.4925 before trimming gains slightly to last quote at 94.56, up 0.4% on the day.

The currency has recovered by more than 2% after threatening to breach record low levels earlier in the month. Its bounceback was spurred by a range of policy measures introduced by the central bank, including redirecting oil-linked dollar demand away from the spot market and raising the cost of certain importer hedges.

The Reserve Bank of India's market interventions have further reinforced the impact of those measures alongside foreign inflows.

"Foreign banks have been on offer (on USD/INR) and the next support level for the pair could be around 94.30," a trader at a state-run bank said.

While the currency has found its footing recently, traders remain wary of the risk from elevated oil prices, which represent a key economic headwind for India's net energy-importing economy.

"We think USD-INR will resume its modest upward drift –- due to India’s current account deficit, higher inflation versus peers and the RBI’s large short FX forward positions," analysts at HSBC said in a note.

On the day, Brent crude prices were up more than 1% at $110 per barrel as escalating Middle East tensions kept fears of supply disruptions on the boil. Iran told Pakistan's army chief there would be no talks with Washington until its demands were met, Iranian media outlet Nournews reported on Tuesday.

Asian currencies traded largely rangebound, while the dollar index was nearly flat at 101.8.

Later in the day, the focus will turn to the release of the minutes of the RBI's latest monetary policy review held earlier this month. The central bank had delivered its first rate hike in four years on October 7 and signalled more were likely to come.