The rupee ended lower by 35 paise at 49.50/51 against the American currency on Thursday on fresh dollar demand from banks and importers despite weakness of dollar overseas.
At the Interbank Foreign Exchange (Forex) market, the rupee resumed steady at 49.15/16 per dollar and traded in the range of 49.15 and 49.52 before settling at 49.50/51, a loss of 0.71 per cent or 35 paise from its previous close.
Fresh dollar demand from banks and importers in view of uncertainty in the currency market mainly affected the rupee value against the dollar, a forex dealer said.
In London, the euro hit the two-month high level against the dollar and yen on hopes that Greece would clinch a bailout deal. This encouraged investors to unwind bearish positions.
Alpari Financial Services (India) CEO Pramit Brahmbhatt said, rupee traded weak taking cues from the dollar demand from oil importers leaving rupee to depreciate by over half a per cent. The rupee fall was restricted by positive equity market and dollar inflows, he added.
The BSE benchmark Sensex was up by 123 points at 17,830.75 on sustained FII inflows as European markets firmed ahead of a decision to ease euro-zone debt crisis, especially in Greece.