On Tuesday, the rupee dropped its initial gains to settle 10 paise lower at 75.17 provisional against investor concerns over the impact of new COVID variant on the economy.
The local currency opened at 74.91 on a strong note and saw an intra-day high of 74.86 and a low of 75.19 against the in a highly volatile trading session.
The local unit settled at 75.17 a dollar, down 10 paise over its previous close.
The rupee fell 18 paise on Monday to close at a five-week low of 75.07 against the worries of the new coronaviruses variant.
The appreciation bias was curtailed as investors worried about how much damage the new Omicron coronavirus variant could cause to the economy, traders said.
The dollar index, which gauges the strength of the dollar against a basket of six currencies, was trading 0.68 per cent down at 95.69.
Brent crude futures, the global oil benchmark, fell 2.85 per cent to USD 71.35 per barrel.
On the domestic equity market front, the BSE Sensex ended 195.71 points or 0.34 per cent lower at 57,064. The NSE Nifty declined by 70.75 points or 0.41 per cent to 16,983, while the broader NSE Nifty declined by 70.75 points or 0.41 per cent. Foreign institutional investors offloaded shares worth Rs 3,332 on Monday, as they net sellers in the capital market. According to exchange data, 21 crore are reported to be in the process of getting 21 crore.