The rupee depreciated 25 paise and settled at 73.63 (provisional) against the US dollar on Tuesday amid rise in demand for the American currency from banks and importers.
At the interbank forex market, the rupee started off on a tepid note at 73.63 and finally closed at 73.60 against the greenback, down 25 paise over its previous close.
The local unit traded in a range of 73.37 and 73.64 per US dollar during the session.
On Monday, the rupee had settled at 73.35 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.43 per cent to 93.11.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 174.22 points higher at 38,591.45, and the broader NSE Nifty rose 38.05 points to 11,393.10.
Foreign institutional investors were net sellers in the capital market as they sold shares worth Rs 6.93 crore on a net basis on Monday, according to exchange data.
Brent crude futures, the global oil benchmark, fell 1.55 per cent to USD 41.36 per barrel.