The dollar index was trading 0.02% higher at 96.23.
The rupee on Tuesday lost 29 paise to close at 74.57 (provisional) against the US dollar in view of the strength of the US currency in the overseas market.
Forex traders said firming crude oil prices along with rising concerns over the Omicron version of the coronavirus and its impact on the economic recovery weighed on the local unit.
At the interbank forex market, the local currency opened at 74.49 and saw intra-day highs of 74.46 and 74.61 lows against the US Dollar.
The local unit finally closed at 74.57, down 29 paise from its previous close of 74.57.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02% higher at 96.23.
Meanwhile, global oil benchmark Brent crude futures rose 0.39% to $79.29 per barrel.
On the domestic equity market front, the BSE Sensex ended 672.71 points or 1.14% higher at 59,855.93, while the broader NSE Nifty jumped 179.55 points or 1.02% to end at 17,805.25.
Foreign institutional investors remained net buyers in the capital markets on Monday as they bought shares worth 902.64 crore, according to exchange data.
On the domestic macroeconomic front, India’s exports grew 37 per cent year-on-year to $37.29 billion in December, the highest monthly figure ever. up to $21.99 billion.
Imports also rose 38% to $59.27 billion in December, rising 65.17% to $15.9 billion due to a rise in oil imports, government data showed on Monday.
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