The rupee appreciated by 7 paise to close at 82.81 against the US dollar on Tuesday, as easing crude oil prices buoyed investor sentiments.

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At the interbank foreign exchange market, the local currency opened at 82.71 and witnessed a high of 82.62 and a low of 82.81.

It finally settled at 82.81 against the American currency, registering a rise of 7 paise over its previous close.

In the previous session on Friday, the rupee had slipped 9 paise to close at 82.88 against the dollar.

The forex market was closed on Monday on account of Diwali.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was quoted at 111.98.

Global oil benchmark Brent crude futures fell 1.59 per cent to USD 91.78 per barrel.

On the domestic equity market front, the 30-share BSE Sensex fell 287.70 points or 0.48 per cent to end at 59,543.96, while the broader NSE Nifty declined 74.40 points or 0.42 per cent to 17,656.35.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets as they offloaded shares worth Rs 247.01 crore on Tuesday, according to exchange data.

Stock and forex markets will remain closed on Wednesday for 'Diwali Balipratipada'.