The rupee slipped from its initial gains by 12 paise against the US currency to 67.96 in the evening deals due to heavy capital outflows from the equity market and on bouts of dollar demand from importers.
The Indian unit resumed slightly lower at 67.85 per dollar against yesterday’s closing level of 67.84 at the Interbank Foreign Exchange (Forex) market.
However, it weakened to 67.98, before being quoted at 67.96 at 4.35 pm local time.
The domestic unit hovered in a range of 67.77 and 67.98 during afternoon trade.
In the overseas markets, the yen rose on Tuesday as a fall in oil prices and Asian stock markets sent investors in search of traditional safe havens for capital, while the Australian dollar slipped after its central bank held rates steady but left the door open to further easing.
The dollar fell 0.3 per cent to 120.63 yen, backing away from a one-month high of 121.70 yen set on Friday in the wake of BoJ’s easing rates into negative territory.
Meanwhile, the benchmark BSE Sensex plunged 285.83 points or 1.15 per cent at 24,539 as traders and investors grew concerned after crude resumed its slide.