The rupee pared its initial gains to close marginally down by 1 paisa at 74.88 against the US dollar on Tuesday due to worries that the alarming surge in Covid-19 cases could derail the economic recovery in the country.
An increase in crude oil prices and losses in the domestic equity markets also weighed on the local unit.
At the interbank forex market, the domestic unit opened at 74.65 against the US dollar, but lost ground to touch the day’s low level of 74.98. The rupee finally closed at 74.88 against the US dollar, down by 1 paisa over the previous close.