The Indian rupee came off from its early high against the U.S. dollar in evening deals on Tuesday, as regional stocks fell, tracking steep losses in European markets, as investors mulled over comments from several Federal Reserve officials making the case for a possible year-end rate increase.

Increased volatility ahead of the expiry of September series F&O contracts on Thursday also prompted investors to book some profits at higher levels.

The benchmark index BSE Sensex reversed early gains to end the session down 541.14 points or 2.07 percent at 25,651.84. The broader Nifty index slumped 165.10 points or 2.07 percent to 7,812.

The rupee declined to 65.9525 against the greenback, reversing from an early nearly 5-week high of 65.545. The rupee is likely to find support around the 67.00 zone.

The material has been provided by InstaForex Company – www.instaforex.com