Indian rupee pares early gains, settles 1 paisa down at 74.33 against US dollar

The rupee pared its early gains and settled for the day on a flat note at 74.33 against the US dollar on Tuesday, tracking muted domestic equities.

At the interbank forex market the domestic unit witnessed highly volatile trade. It opened on a strong note at 74.17, but lost ground during the day and finally ended at 74.33 against the greenback, down 1 paisa over its previous close of 74.32 against the American currency.

During the day, the local unit witnessed an intra-day high of 74.17 and a low of 74.51 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.12 per cent down at 93.18.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 78.43 points lower at 38,720.65 and broader NSE Nifty declined 31.80 points to 11,434.65.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 219.07 crore on Monday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 0.27 per cent to USD 45.25 per barrel.