The rupee fell 16 paise against the US dollar on Tuesday to start trading at 73.64 (provisional) in early trade on positive equities. In the interbank foreign exchange market, the domestic unit witnessed high volatility. It opened on a strong note at 73.33, but lost ground over the course of the day and eventually closed at 73.64 against the US dollar, losing 16 paise against its previous close of 73.48.
During the session, the rupee touched a high of 73.33 and a low of 73.72 against the greenback.
Meanwhile, the dollar index, which estimates the strength of the greenback against a basket of six currencies, fell 0.16 percent to 92.90.
On the domestic equity market front, the 30-share BSE benchmark Sensex was up 266.63 points to trade at 39,023.26, and the broader NSE Nifty rose 78.35 points to 11,518.40.
Foreign institutional investors were net buyers in the capital market as they bought shares worth Rs 298.22 crore on a net basis on Monday, according to exchange data.
Brent crude futures, the global oil benchmark, rose 0.28 percent to $ 39.72 a barrel.