The Indian rupee strengthened against the U.S. dollar in the afternoon deals on Tuesday, after the Reserve Bank of India's newly appointed Governor Urjit Patel cut the key interest rates unexpectedly.

At the first monetary policy committee meeting of RBI, policymakers unanimously decided to reduce the benchmark lending rate, the repo, to 6.25 percent from 6.50 percent. Consequently, the reverse repo rate was adjusted to 5.75 percent.

Against the greenback, the rupee rose to a 5-day high of 66.3750 from an early low of 66.6180. At yesterday's close, the rupee was trading at 66.4080 against the greenback.

If the rupee extends its uptrend, it is likely to find resistance around the 65.00 area.

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