Forex dealers said besides dollar's gains against other currencies overseas on the back of strong retail data, demand for the American currency from importers put pressure on the rupee but a higher opening the domestic equity market capped the losses.
The rupee had gained 38 paise to close at one-month high of 61.52 against the dollar on Monday. The forex market remained closed yesterday on account of 'Id-E-Milad'.
Meanwhile, the benchmark BSE Sensex rose by 122.79 points, or 0.58 per cent, to 21,155.67.