The rupee bounced back from the day’s low to settle almost flat at 73.57 on lower crude oil prices and increased dollar selling by banks and exporters.

The rupee opened weak at 73.74 and later fell to the day’s low of 73.82 due to steady capital outflows amid huge losses in the equity market due to geopolitical concerns.

According to a forex dealer, crude oil prices, which fell 1.93 per cent to $78.29 per barrel, helped arrest the rupee's decline. Increased dollar selling by banks on behalf of the Reserve Bank of India also supported the domestic unit.

“Rupee pared losses and closed flat as crude oil prices retreated and due to dollar selling by state-run lenders on behalf of RBI,” V K Sharma, Head PCG & Capital Markets Group, HDFC Securities, said.

Bond markets also arrested their decline as softer US yields supported the sentiment. The benchmark 10-year bond yield fell 4 basis points, the most since October 16, to 7.89 per cent as investors cut down their exposure to riskier assets.

The rupee settled at 73.57 per dollar, showing a loss of just 1 paise over the previous close. On Monday, the rupee had settled 24 paise lower at 73.56 against the US dollar.

Stock markets fell for the fourth day in a row tracking a sluggish trend in global markets owing to geopolitical tensions and fresh worries over trade war. The 30-share BSE Sensex closed down 287.15 points or 0.84 per cent at 33,847.23.

Foreign investors pulled over Rs 850 crore from the capital markets since Friday amid growing geopolitical tensions.

Financial Benchmark India Pvt Ltd set the reference rate for the rupee/dollar at 73.7818 and for rupee/euro at 84.4743. The reference rate for rupee/British pound was fixed at 95.5568 and for rupee/100 Japanese yen at 65.62.

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