Rupee closed down by four paise or 0.06 per cent at 61.98 against the US dollar on Wednesday.

In the morning, breaking a three-day winning run, the rupee lost 8 paise to 62.02 against the US dollar in early trade on the Interbank Foreign Exchange market due to appreciation of the US currency overseas.

Forex dealers said apart from month-end demand for the American currency from importers, dollar gaining against other currencies overseas also put pressure on the local unit, but a higher opening in the domestic equity market capped the fall.

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