The rupee appreciated 14 paise to 81.65 against the U.S. dollar in early trade on Tuesday as the American currency retreated from its elevated levels.
Forex traders said foreign fund outflows and a muted trend in domestic equities weighed on the local unit and restricted the appreciation bias.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹1,593.83 crore, according to exchange data.
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