Mumbai, Oct 29 (PTI) The rupee gained 2 paise to settle at 84.05 against the US dollar on Tuesday, helped by a positive trend in domestic equities and lower global crude prices.
However, unabated foreign capital outflows dented market sentiment and restricted the rise in the local unit.
Forex traders said the rupee is hovering around record low levels as the strong dollar weighed on the local unit while positive domestic equities, weak crude oil prices and suspected intervention by the Reserve Bank of India (RBI) supported the local currency at lower levels.
At the interbank foreign exchange, the rupee opened at 84.08 against the greenback. During the session, it traded in a tight range.
The rupee finally closed at 84.05, up 2 paise against its previous close.
On Monday, the rupee settled 1 paisa higher at 84.07 against the US dollar.
The local currency touched its lowest closing level of 84.10 against the dollar on October 11.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent lower at 104.27.
A decline in crude price has helped ease pressure on the rupee despite ongoing market challenges, according to experts.
Brent crude, the global oil benchmark, rose 0.74 per cent to USD 71.95 per barrel in futures trade.
On the domestic equity market front, Sensex advanced 363.99 points, or 0.45 per cent, to 80,369.03 points. The Nifty rose 127.70 points, or 0.52 per cent, to 24,466.85 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth Rs 548.69 crore, according to exchange data.