Rupee closed at 81.70 against the dollar on Tuesday amid unabated foreign capital outflows

Against the US dollar, the rupee closed at 81.70 (preliminary), down 28 pice on Tuesday as unabated foreign capital outflows hit market sentiment.

But a weaker dollar and falling crude oil prices have capped losses in the local currency, forex traders said.

In the interbank foreign exchange market, the rupee opened at 81.61 per dollar, lower than the previous close of 81.42. Regional units moved in the 81.43 to 81.76 range during the day.

On Monday, the rupee closed at $81.42 against the US dollar, down 25 pips.

Meanwhile, the US Dollar Index, which measures the strength of the US dollar against six currencies, fell 0.01% to 102.15 on concerns about US economic growth.

Brent crude was trading at $87.83 a barrel, down 0.41%.

In the domestic stock market, the 30-week BSE Sensex index closed nearly flat at 60,978.75, up 37.08 points (0.06%). The wider NSE Nifty rose 0.25 points to 18,118.30.

Exchange data showed that foreign institutional investors (FIIs) were net sellers on Monday, selling shares worth Rs 219.87 crore in capital markets.