Due to month-end dollar demand from oil importers and a stronger dollar in overseas markets, the rupee declined by 16 paise to close at 74.76  against the US dollar on Tuesday.

The rupee was also pushed down by investors' lack of interest for riskier assets. Furthermore, market investors are also looking for additional clues from the outcome of the US Federal Reserve's meeting.

The local currency opened at 74.60 against the dollar on the interbank foreign exchange market, with an intraday high movement  of 74.57 and a low of 74.80 during the session. The currency eventually finished at 74.76 rupees, down 16 paise from its previous closing of 74.60 rupees. This is the local team's second consecutive session of defeat. In just two days, the rupee has lost 33 paise against the US dollar.

The dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.22 percent at 96.12.The global oil benchmark, Brent crude futures, climbed 1.48 percent to $87.55 per barrel.

The BSE Sensex finished 366.64 points or 0.64 percent higher at 57,858.15, while the broader NSE Nifty advanced 128.85 points or 0.75 percent to 17,277.95 on the domestic equity market. According to stock exchange data, foreign institutional investors were net sellers in the capital market on Monday, offloading shares worth Rs 3,751.58 crore.

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