The rupee on Tuesday slipped further by two paise to close at 61.32 against the US dollar due to some demand for the American unit in a lacklustre trade.
There was some dollar demand from importers, mainly oil refiners, as brent crude for December delivery was trading low near $85 in morning deals, traders said.
At the Interbank Foreign Exchange (Forex) market, the local currency commenced slightly lower at 61.33 and touched a low of 61.41 in mid-session due to profit-booking in local equities.
However, later it bounced back to a high of 61.2950 before concluding at 61.32 on fag-end rise on local bourses and stray dollar demand from importers, mainly oil refiners, exhibiting a fall of 2 paise or 0.03%.
On Monday, it was down by 3 paise or 0.05%.
"Rupee traded in a thin range and ended flat. Rupee is expected to appreciate in coming days tracking gains in local equities. The trading range for the Spot rupee is expected to be within 60.80 to 61.80," Pramit Brahmbhatt, CEO, Veracity Group said.
The BSE benchmark index Sensex on Tuesday recovered by 128 points while FPIs/FIIs bought shares worth $10.61 million on Monday, as per Sebi data.
The dollar index was up by 0.04% against a basket of six major currencies ahead of outcome of US Fed's monetary policy review on Wednesday.