The Indian rupee was trading at 59.28/29 versus its close of 59.20/21 on Monday tracking weakness in the domestic sharemarket.
Traders will continue to monitor foreign fund flows into domestic share and debt market for direction. Foreign investors bought a net $826.9 million in debt markets on Friday, the highest single-day flows since Jan. 15.
The pair is likely to see some resistance around 59.40 levels, holding it in a 59.20 to 59.40 range for the day.
Local stocks trading down 0.21 percent.
Most other Asian currencies also weakened against the dollar.
The US dollar held steady versus a basket of major currencies on Tuesday, clinging to gains made the previous day thanks to higher US bond yields after last week's solid US jobs report.