The Indian rupee trimmed early losses on Tuesday after a sharp slide to 13-month lows last week was seen by some investors as overdone, but the outlook remained bearish because of high oil prices. The partially convertible rupee ended at 42.635/640 per dollar, 0.23 percent weaker than Friday's close of 42.53/54.
Markets were closed on Monday for a holiday. The rupee hit a low of 42.92 on Friday, its weakest since mid-April 2007. "The dollar/rupee buying by oil refiners was not sustained and some selling at higher levels by exporters and banks pushed it down," said V. Rajagopal, head of currency trading at Mumbai-based Kotak Mahindra Bank.