Mumbai: The rupee pared early losses and settled 13 paise higher at 73.71 against the US dollar on Tuesday, tracking positive domestic equities.
At the interbank forex market, the domestic unit opened on a weak note at 73.94 against the greenback, but soon recovered the lost ground and finally closed at 73.71, registering a gain of 13 paise over its previous close of 73.84 against the US currency.
During the session, the domestic unit witnessed an intra-day high of 73.71 and a low of 73.94 against the greenback.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.07 per cent to 93.11.
On the equity market front, BSE index Sensex was trading 230.14 points higher at 40,375.64, and the broader NSE Nifty advanced 77.20 points to 11,844.95.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 119.42 crore on a net basis on Monday, according to exchange data.
Brent crude futures, the global oil benchmark, increased 0.52 per cent to USD 40.67 per barrel.