The rupee slipped 1 paisa to 82.41 against the US dollar in the morning trade on Tuesday amid the strengthening of the American currency and sustained foreign fund outflows.

Moreover, a weak trend in domestic equities and risk aversion sentiment among investors weighed on the local unit.

At the interbank foreign exchange, the domestic unit opened at 82.35 against the dollar, then pared the gains to 82.41, registering a loss of just 1 paisa over its previous close.

In a highly volatile session, the local unit also touched 82.33 against the American currency in initial deals.

On Monday, the rupee slipped 10 paise to finish at a fresh lifetime low of 82.40 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.12 per cent to 113.27.

Brent crude futures, the global oil benchmark, fell 0.28 per cent to USD 95.92 per barrel.

"RBI sold more than a billion dollars yesterday to protect against a fast depreciation in Rupee, allowing some respite to importers who could start panicking after a fall of 10.50 per cent in its value this year," said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

The range for the day is expected to be between 82.20 to 82.80 as Asian currencies fall from their recent highs, Bhansali noted.

Markets await US CPI data and Indian CPI data for further cues.

In the domestic equity market, the 30-share BSE Sensex was trading 158.97 points or 0.27 per cent down at 57,832.14, and the broader NSE Nifty fell 50.35 points or 0.29 per cent to 17,190.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets as they offloaded shares worth Rs 2,139.02 crore on Monday, according to exchange data.