The rupee slipped 3 paise to close at 81.71 (provisional) against the US dollar on Tuesday as rising crude oil prices in the international market weighed on forex market sentiment.
However, a firm trend in domestic equities and a weak American currency overseas capped the losses in the local unit, forex traders said.
At the interbank foreign exchange market, the local unit opened strong at 81.58 but later slipped into the negative territory. During the session, it touched an intra-day high of 81.57 and a low of 81.74 against the greenback.
The local unit finally settled at 81.71, registering a decline of 3 paise over its previous close of 81.68.