- Tag results for US dollar
The rise in the rupee was also supported by dollar-selling by exporters and banks and the US unit's weakness against some currencies overseas, traders said.
Increase in global crude oil prices and demand for the American currency results in the 54 paise dip.
The international benchmark, Brent crude again breached the USD 71 a barrel mark by surging 1.21 per cent.
On Friday, the rupee clocked its biggest single-day gain in over five years, surging by 100 paise to close at 72.45 against the US dollar.
Weak dollar against some currencies overseas and strong equity market boosted the Indian currency.
The domestic unit registered day high and low at 73.88 and 73.45 respectively. Weak dollar against some currencies overseas pushed the Indian currency up, dealer added.
Traders said the US dollar's strength against some currencies overseas and a lower opening in the domestic equity markets also weighed on the local unit.
Traders said increased demand for the US currency from importers and a lower opening of domestic equity market weighed on the local unit.
The benchmark Sensex, cracked below the 34,000-mark by falling 193.15 points, or 0.57 per cent to 33,941.23 in the opening trade Tuesday.
On Friday, the rupee had settled 29 paise higher at 73.32 against the US dollar, amid a weakening greenback.
Meanwhile, the BSE Sensex Friday posted its biggest single-day gain in 19 months, soaring over 700 points, as global markets rebounded after two straight sessions of losses.
Besides, dollar-selling by exporters and banks, the greenback's weakness against some currencies overseas, helped the recovery in the domestic currency.
The rupee’s depreciation is continuing unabated even as both government and the RBI stepped in momentarily to stem the slide.
Forex dealers said besides strong demand for the American currency from importers, concerns of fears of rising fiscal deficit and capital outflows weighed on the domestic currency.
Two, chances of the domestic unit crossing past 75 aren’t being ruled out, leaving exporters and traders worried.