Despite the domestic equity market trading with significant gains. The rupee eased some of its opening losses and settled at 75.04 (provisional) 3 paise against the US dollar on Tuesday.
At the Interbank Foreign Exchange (Forex) market, the rupee weakened to 75.13. Then settled at 75.04 against some US dollars, down 3 paise against the greenback.
During the session, the domestic unit touched an intra-day high of 74.85 and a low of 75.17 against the American currency.
Forex traders said the positive equity market and inflows of foreign funds supported the rupee, while weaker Asian currencies and rising COVID-19 cases were pulling the local unit.
Meanwhile, the dollar index, which measures the strength of the greenback with a basket of six currencies, fell 0.08 percent to 93.46.
Before the domestic equity market, the 30-share BSE benchmark Sensex was up 665.77 points at 37,605.37 and the broader NSE Nifty was up 179.45 points at 11,071.05.
Foreign institutional investors were the net buyers in the capital market as they bought shares worth Rs 7,818.49 crore on Monday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 1 percent to $ 43.71 a barrel.
Meanwhile, the number of cases related to COVID-19 worldwide has crossed 1.82 crores and in India, the number of infections has reached 18,55,745.