Mumbai: The Indian rupee on Tuesday erased most of the gains and was trading little changed against the US dollar after local equity markets fell over 270 points.

At 2pm, the rupee was trading at 64.32 a dollar, up 0.02% from its Monday’s close of 64.36. The rupee opened at 64.32 and touched a high of 64.31 a dollar.

The 10-year bond yield was at 6.456%, compared to its previous close of 6.464%. Bond yields and prices move in opposite directions.

The benchmark Sensex index fell 0.85% or 275 points to 31,810.84. So far this year, it has risen 19%.

So far this year, the rupee has gained 5.3%, while foreign investors bought $8.36 billion and $16.12 billion in local equity and debt markets, respectively.

Asian currencies were trading higher. Japanese yen was up 0.42%, South Korean won 0.23%, China offshore 0.13%, China renminbi 0.12%, Indonesian rupiah 0.1%, Thai baht 0.1%, Taiwan dollar 0.1% and Singapore dollar 0.09%. However, Philippines peso was down 0.22%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.768, down 0.38% from its previous close of 95.128.

Traders are cautious ahead of Thursday’s European Central Bank policy meeting and next week’s US Federal Reserve meeting.