Mumbai: The rupee depreciated by 12 paise and settled for the day at 73.49 (provisional) against the US dollar on Tuesday.
However, capital inflows and strong domestic equities limited the local currency's fall to some extent.
The Indian currency opened at 73.36 at the interbank forex market and, after witnessing a volatile trading session, closed at 73.49 against the American currency, down 12 paise over its previous closing price of 73.37.
During the session, it touched an intra-day high of 73.29 and a low of 73.53 against the greenback.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.05 percent to 93.37.
On the domestic equity market front, the BSE benchmark Sensex was trading 183.13 points higher at 40,614.73, and the broader NSE Nifty rose 39.10 points to 11,912.15.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,656.78 crore on a net basis on Monday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 0.42 percent to USD 42.44 per barrel.