Mumbai: The rupee declined 7 paise to 83.98 against the US dollar on Tuesday, tracking a strong greenback against major currencies overseas and a sluggish trend in domestic equities.
However, lower crude oil prices in international markets capped the decline in the local unit, forex traders said.
At the interbank foreign exchange market, the rupee opened 3 paise lower at 83.94 against the American currency and traded in the range of 83.94-83.98 during the day.
It finally settled at 83.98 against the US dollar, 7 paise lower than its previous close.
On Monday, the domestic currency settled at 83.91.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.15 per cent at 101.80.
Brent crude, the international oil benchmark, declined 2.1 per cent to 76.26 in futures trade.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth Rs 1,735.46 crore, according to exchange data.