The Indian rupee fell sharply by 35 paisa to 46.55 against the greenback in early trade on Thursday on strong dollar demand.
The domestic currency resumed weaker at 46.37/39 a dollar amid sluggish equity market against its previous close of 46.20/21 a dollar and later fell to a low of 46.55 before being quoted at 46.45/47 a dollar in late morning deals.
Dealers at the Interbank Foreign Exchange (forex) market said fresh dollar demand from oil refiners weighed on the rupee sentiment.
Indian benchmark Sensex was down 64 points or 0.37 per cent at 1030 hours.
The rupee is expected to remain weak against dollar on expectations of month-end dollar demand.