Mumbai: The rupee rebounded from initial losses and settled with a gain of 13 paise at 87.19 against the US dollar on Tuesday, as a weak US Dollar index and a sharp fall in crude oil prices prevented the slide in the domestic unit.
Forex traders said the Indian rupee traded flat with a negative bias on a weak tone in the domestic markets.
However, weakness of the American currency in the overseas market and lower crude oil prices supported the unit.
At the interbank foreign exchange, the rupee witnessed high volatility. It opened at 87.38 then touched the intraday high of 87.27 and the low of 84.40 against the greenback.
The unit ended the session at 87.19 against the dollar, registering a gain of 13 paise from its previous closing level.
On Monday, the rupee settled with a gain of 5 paise at 87.32 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.40 per cent lower at 106.31.
Brent crude, the global oil benchmark, fell 1.49 per cent to $70.55 per barrel in futures trade.
Foreign Institutional Investors offloaded equities worth Rs 4,788.29 crore in the capital markets on a net basis on Monday, according to exchange data.