The rupee edged 2 paise higher to 68.51 against the US dollar in early trade on Tuesday ahead of the Federal Reserve's policy meet. Besides the greenback's weakness against some currencies overseas, increased selling of the American currency by exporters as well as banks supported the rupee, forex dealers said.

The currency's movement was influenced by a higher opening in the domestic equity market. The domestic unit had surged by 57 paise on Monday to close at an over seven-month high of 68.53 against the US dollar, also marking a sixth straight session of gains, driven by sustained foreign fund inflows and narrowing trade deficit. According to provisional data, domestic institutional investors (DIIs) sold shares worth Rs 1,269 crore Monday, while foreign portfolio investors (FPIs) bought shares worth Rs 1,823 crore.