Rupee pares some losses, down 15 paise against USD

Caution ahead of the US Federal Reserve's policy meeting outcome Wednesday on likely interest rate hike also weighed on the rupee sentiment.

Brent crude oil rose to the highest level in four years after Saudi Arabia and Russia ruled out any immediate increase in production despite calls by US President Donald Trump for action to raise global supply.

The international benchmark Brent crude breached the USD 81 a barrel mark by surging over 3 per cent to trade at USD 81.28 a barrel.

The rupee opened lower at 72.89 against Monday's closing level of 72.63 a dollar at the interbank foreign exchange market here.

The rupee dipped near all-time lows 72.96 and erased some lost ground to quote at 72.70 in morning deals, it was trading at 72.78 at 1030 hrs.

"Recovery in local equities is lending some support to the rupee," a dealer said.

Overseas, the US dollar was higher against its major peers in early Asian trade as investors looked to policy clues from the US Federal Reserve, which is widely expected to hike rates this week, even as the US-China trade dispute kept markets cautious.

Meanwhile, the 30-share BSE Sensex was trading higher by 116.14 points, or 0.32 per cent, at 36,421.16 at 1050 hrs.