At the Interbank Foreign Exchange Market, the domestic unit commenced lower at 54.70 as against overnight close of 54.61.
It immediately touched an over 8-week low of 54.7850 on sustained dollar demand from importers.
As global investors waited for US Presidential polls, uncertainty over Greece's next aid payment kept all currencies in tight leash, said traders.
A good set of economic data from key European nations, however, helped the Euro climb above $1.28 level later, helping the rupee reverse losses as well.
Renewed dollar selling by exporters and firm local equities aided the rupee's recovery and it touched a high of 54.35 a dollar.
It finally concluded at 54.43 -- up 18 paise or 0.33 per cent over Monday's close of 54.61.
As per provisional data from BSE, FIIs bought Indian stocks worth Rs 174 crore (approx. $30 million) on a net level.
The dollar index was down by 0.09 per cent against a basket of currencies ahead of the US election later on Tuesday.
"Rupee was seen getting some support from dollar selling and a slight recovery in the Euro.
"The downside in rupee halted after the Spanish and the Italian services PMI data came out better-than-expected," said Abhishek Goenka, Founder &
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