The rupee on Wednesday fell by 23 paise to 59.89 against the US currency in the late morning trade on month-end dollar demand from importers, coupled with firm global cues.
Persistent capital outflows from foreign funds also affected the rupee value against the dollar, forex dealers said.
The rupee resumed lower at 59.74 per dollar as against the last closing level of 59.66 per dollar at the Interbank Foreign Exchange (Forex) Market and dropped further to 59.89 per dollar at 10.40 a.m.
It hovered in a range of 59.72—59.90 a dollar during the morning deals.
In the global market, the US dollar gained for the sixth day of gains supported by data underscoring the Federal Reserve’s view of an improving economy and a likely slowdown in monetary stimulus.
Meanwhile, the BSE benchmark Sensex was trading lower by 11 points, or 0.06 per cent, at 18,618.47 at 10 45 a.m