The rupee fell against the US dollar on Tuesday, as a strong dollar and weak domestic equities weighed on investor sentiment. The local unit closed at 83.21 against the greenback, down 15 paise from its previous close.

Forex traders said muted domestic macroeconomic data and sustained foreign institutional investor (FII) outflows also put downward pressure on the rupee.

The rupee opened at 83.21 against the US dollar and moved in a range of 83.23 to 83.17 during the day.

The dollar index, which gauges the greenback”s strength against a basket of six currencies, rose 0.14% to 104.05. Brent crude futures, the global oil benchmark, declined 0.02% to USD 90.69 per barrel.

On the domestic equity market front, the Sensex closed 316.31 points or 0.48% lower at 65,512.10, while the Nifty declined 109.55 points or 0.56% to 19,528.75. FIIs were net sellers in the capital market on Friday, offloading shares worth Rs 1,685.70 crore.

Analysts said the rupee is likely to trade with a negative bias in the near term, as hawkish US Federal Reserve rhetoric and a strong dollar may continue to put downward pressure on the rupee. Risk aversion in global markets may further weigh on the domestic currency. However, any decline in crude oil prices and selling of dollars by the RBI may support the rupee at lower levels.