The rupee reverseed early gains to trade at 55.75/76 versus its previous close of 55.73/74 as heavy dollar buying by oil refiners to meet month-end import commitments weighed heavily against Indian currency.
The rupee had rose to as high as 55.54 at open. It had fell to 55.89 on Monday, its weakest since September 6.
Traders say the next target for USD/INR is at 56.03, its low on Sept. 6, which if broken would lead to further losses towards 56.50.
Shares were up 1.3 per cent, slowing the pace of losses in the pair, traders say.
However, absence of any major dollar supplies continuing to help the dollar.
Traders look out for the RBI's intervention around 55.90-56 levels as most believe they would try to protect the pair from breaking above 56.03.
