As market sentiments were impacted by unabated foreign funds outflows, the rupee plunged 28 paise to close at 81.70 (provisional), against the US dollar on Tuesday.

Forex traders stated that the losses were limited by a weak dollar, as well as a fall in crude oil prices.

The rupee opened lower at 81.61 dollars to the dollar on the interbank foreign currency market against the previous close which was 81.42. The local unit fluctuated between 81.43 and 81.76 throughout the day.

The rupee closed Monday at 81.42 against US dollars after a 25-paise decline.

The US dollar index, which measures the strength of the greenback against six currencies, fell 0.01 percent to 102.15 in the meantime, amid concerns about US economic growth.

Brent crude oil traded 0.41 percent lower at USD87.83/barrel

The domestic equity market was almost flat with the 30-share BSE Sensex ending at 60,978.75. This is an increase of 37.08 points, or 0.06 percent. The NSE Nifty broader index gained 0.25 points to 18,118.30.

According to exchange data, foreign institutional investors (FIIs), were net sellers on Monday when they sold shares in excess of Rs 219.87 crore.