The rupee pared its early gains and was trading a tad weak at 66.82 on mild dollar demand from importers.
In early trade, the domestic unit appreciated by 5 paise to 66.75 against the dollar on increased selling of the US currency by exporters and banks.
Forex dealers said a strong domestic equity market and the dollar’s weakness against other currencies overseas too supported the rupee.
However, it weakened to 66.83 before quoting at 66.82 at 4.50 pm local time. The rupee hovered in a range of 66.83 and 66.67 in the evening trade.
The dollar edged down slightly in Asian trading on Tuesday, while the Australian dollar soared after central bank minutes reduced expectations of an interest rate cut.
Yesterday, the rupee had lost three paise to hit a two-month closing low of 66.80 on persistent dollar demand from banks and importers on the back of higher greenback in the overseas market.
Meanwhile, the benchmark BSE Sensex ended higher by 120.38 points or 0.47 per cent at 25,773.61.