Rising equity markets and consistent FII inflow have supported the currency.
The Indian rupee opened stronger at 74.13 against the US dollar on November 20, rising 14 paise from the previous day's close.
The rupee closed at 74.27 to the dollar in the previous session, down 8 paise.
Rising equity market and consistent FII inflow supported the Indian currency. But overall the rupee has been trading in a tight range of 74.00-74.75 to the dollar in November as increasing COVID-19 infections in Europe and the United States offset the positive developments on the vaccine front.
"We continue to feel that no major moves are expected in the pair and USDINR would consolidate in the range of 74-74.70. Pandemic and vaccine news have remained at the centre so far. Investors would closely watch developments on this front," ICICI Direct said.
The dollar-rupee November contract on the NSE was at 74.29 in the last session. The open interest fell 4.9 percent for the November series, the brokerage said.
In the intraday trade, one can sell USDINR in the range of 74.35-74.40, ICICI Direct said.
FIIs have been net buyers in November, so far, acquiring Rs 1,180.61 crore worth of shares on November 19, taking the month's buying to Rs 42,390.24 crore.On the equity front, the benchmark indices rebounded after falling 1.3 percent in the previous session. The BSE Sensex gained 133.08 points at 43,733.04 and the Nifty50 rose 43.60 points to 12,815.30 in the morning session.