The rupee gained 18 paise versus the US dollar in early trade on Tuesday, as crude oil prices fell. Foreign money withdrawals and a negative trend in local stocks, according to forex dealers, impacted on investor confidence and limited the appreciating bias.
The local unit began at 82.20 versus the dollar on the interbank foreign exchange, then rose to 82.17, an increase of 18 paise from its previous finish.
The rupee closed at 82.35 versus the US dollar on Monday.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, increased 0.21 percent to 103.21.
Brent crude futures lost 0.49 percent to $79.26 a barrel, the global oil benchmark.
The 30-share BSE Sensex was trading 353.74 points, or 0.58 percent, down at 60,393.57 points in the domestic equities market. The NSE Nifty dropped 82.55 points, or 0.46 percent, to 18,018.65 points.
According to exchange statistics, foreign institutional investors (FIIs) were net sellers in the capital market on Monday, offloading shares worth 203.13 crore.