At 9:02 a.m. (0332 GMT), the rupee was at 52.95/52.98 to the dollar after hitting 53. It ended 0.3 percent weaker at 52.88/90 on Monday.

Traders said they were watching the central bank for any intervention to support the rupee, which had hit a record low of 54.30 last week.

Asian stocks and the euro steadied on Tuesday, but sentiment remained fragile on concerns that efforts to contain the euro zone debt crisis were faltering and tougher rules to strengthen banks' capital would further undermine their profits.