The rupee depreciated by 15 paise to settle at 73.17 (provisional) against the US dollar on Tuesday even as the domestic equity markets settled with significant gains.
However, sustained foreign fund inflows and weakness of the American currency in the overseas market restricted the rupee's fall, forex dealers said.
At the interbank forex market, the domestic unit opened flat at 73.02 against the greenback. It swung between a low of 73.27 and a high of 73.02 during the session. It finally settled at 73.17, down 15 paise against its previous close.
On Monday, the rupee appreciated by 9 paise to close at a four-month high of 73.02 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.19 per cent to 89.69.
On the domestic equity market front, the BSE Sensex ended 260.98 points or 0.54 per cent higher at 48,437.78, while the broader NSE Nifty advanced 66.60 points or 0.47 per cent to 14,199.50.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,843.22 crore on a net basis on Monday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, advanced 0.72 per cent to USD 51.56 per barrel.
