Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 89.48.
"Rising COVID-19 infections could push investors towards the safe haven appeal of the US dollar and cap gains for the domestic unit," Reliance Securities said in a research note.
However, foreign portfolio investor (FPI) flows into the domestic equity markets could cap losses, it added.
Further, most Asian currencies were weak against the greenback this morning and could weigh on sentiments, traders said.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 33.65 points lower at 48,404.13, and the broader NSE Nifty was down 10.20 points at 14,189.30.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 986.30 crore on a net basis on Tuesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 0.52 per cent to USD 53.88 per barrel.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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