The rupee appreciated by 12 paise to close at 87.63 against the US dollar on Tuesday, supported by favourable domestic macroeconomic data and hopes of easing global trade tensions.

Traders said gains in the local unit were capped by a weak trend in domestic equities and persistent foreign capital outflows.

At the interbank foreign exchange market, the rupee opened at 87.70 and traded in the range of 87.59 to 87.73 before settling 12 paise higher from its previous close.