The rupee closed 12 paise lower at 79.90 against the US dollar in early trade on Tuesday, weighing it down on the strength of the US currency in the overseas market.
At the interbank forex market, the rupee opened at 79.80 against the greenback, then fell to 79.90, registering a decline of 12 paise over the previous close.
On Monday, the rupee had gained 9 paise to close at 79.78 against the dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.08% to 109.62.
The rupee opened at 79.80 as the dollar index fell slightly below the level of 110. Besides, the euro and the British pound rose after a major fall due to Russian gas issues, said Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors.
“The US dollar was a good bid as the rupee fell to 79.90 before recovering to the level of 79.85,” Mr Bhansali said, adding that the range is expected to be in the range of 79.50 to 80.
Global oil benchmark Brent crude futures fell 0.80% to $94.97 a barrel.
On the domestic equity market front, the 30-share BSE Sensex was trading 12.49 points or 0.02% higher at 59,258.47, while the broader NSE Nifty was trading 7.80 points or 0.04% higher at 17,673.60.
Foreign institutional investors were net sellers in the capital markets on Monday as they sold shares worth ₹811.75 crore, according to exchange data.