The Indian rupee was at 72.7650 to the dollar, down from its previous close of 72.44 when it had gained the most in 5 years tracking an ease in trade tensions between the U.S. and China and lower oil prices.

However, the rupee is unlikely to fall sharply during the day as it is expected to take comfort from soft crude prices.

Oil prices fell on Monday as the start to U.S. sanctions against Iran's fuel exports was softened by waivers that will allow some countries to still import Iranian crude, at least temporarily.