MUMBAI: The rupee opened on a cautious note and fell 28 paise to 71.88 against the US dollar in early trade on Tuesday.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.01 per cent to 98.61.
On Monday, the Indian rupee had plunged by 68 paise to 71.60 against the US dollar.
At the Interbank Foreign Exchange, the rupee opened at 71.83 then fell to 71.88 against the US dollar, showing a decline of 28 paise over its previous closing.
Domestic bourses opened on a negative note on Tuesday with benchmark indices Sensex trading 137.87 points down at 36,985.44 and Nifty lower by 38.85 points at 10,964.65.
According to provisional exchange data, Foreign institutional investors (FIIs), who were net buyers for the past few sessions, offloaded shares worth Rs 751.26 crore on Monday.
Crude oil benchmark, Brent Futures, surged by almost 20 per cent to USD 71.95 per barrel (intra-day) on Monday.
However, Brent Futures on Tuesday saw some moderation and was trading at USD 68.35 per barrel, down 0.97 per cent over the previous close.
The 10-year government bond yield was at 6.71 per cent in morning trade.