Forex traders said the dollar strengthening against major global currencies overseas and losses in the domestic equity market also weighed on the local unit.
The domestic currency, however, pared some losses and finally ended at 70.49 per dollar, down by 3 paise against its previous close.
The rupee came under pressure following heavy selling in domestic equities and rise in crude oil prices.
Brent crude, the international benchmark, again and was quoted at USD 63.09 per barrel Tuesday, higher by 2.27 per cent, putting pressure on the local unit.
Building on Monday's surge, oil prices continued to rise Tuesday fuelled by the Russia-Saudi Arabia pact to cap output. Moreover, global investors also cheered the deal between Donald Trump and Xi Jinping announced Saturday, to halt the tariffs battle for 90 days while they try to resolve their differences.
The BSE Sensex ended lower by 106.69 points, or 0.29 per cent, to close at 36,134.31. Similarly, the broader NSE Nifty edged up by 14.25 points, or 0.13 per cent, to end at 10,869.50.
Foreign funds withdrew Rs 55 crore on a net basis from capital markets, provisional data showed.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 70.3455 and for rupee/euro at 80.0790. The reference rate for rupee/British pound was fixed at 89.6450 and for rupee/100 Japanese yen was 62.21.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)