Rupee pared initial losses to close at 9 paise higher at 74.37 against the dollar on Tuesday despite a noticeable lacklustre trend in the domestic equity market.
The local currency opened at 74.49 against the greenback and oscillated between 74.28 to 74.35 during trade today. On Monday, the rupee fell 3 paise to close at 74.48 against the dollar as equity markets back home operated on a muted trend. Forex dealers had said lower crude prices in the international market restricted the local currency's fall.
On Tuesday, Brent crude futures rose 0.69 per cent to $82.62 per barrel.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.12 per cent higher at 95.52.
BSE Sensex ended the day with 396.34 points or 0.65 per cent lower at 60,322.27, the broader NSE Nifty fell 110.25 points or 0.61 per cent to 17,999.20.
Benchmark stock indices Sensex and Nifty tumbled on Tuesday due to heavy selling in Reliance Industries, ICICI Bank and SBI amid a mixed trend in global markets. Reliance Industries was the top loser in the Sensex pack, shedding 2.51 per cent. Among other losers, SBI sank 2.31 per cent, Ultratech Cement by 2.2 per cent, NTPC by 2.08 per cent and IndusInd by 1.8 per cent.
Foreign institutional investors were net buyers in the capital market on Monday as they purchased shares worth Rs 424.74 crore, according to exchange data.
(With inputs from PTI)