The rupee on Thursday fell back two paise to end at Rs. 60.14 against the dollar on weak local equities and demand for the U.S. currency from importers, snapping two straight days of marginal gains.
A better dollar overseas also weighed on the rupee while capital inflows capped the rupee fall, said forex dealers.
At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced higher at 60.10 a dollar from last close of Rs. 60.12. It moved in a tight range between Rs. 60.08 and Rs. 60.20 before concluding at Rs. 60.14, a fall of two paise or 0.03 per cent.
The rupee had gained one paise on June 25 and seven paise on June 24.
The Indian benchmark S&P BSE Sensex on Thursday tumbled by 251.07 points, or 0.99 per cent. FIIs had picked up shares worth Rs. 694.63 crore on Wednesday, as per provisional data.
The dollar index, an indicator of six major global rivals, was up by 0.04 per cent.
“Domestic currency opened on a stronger note tracking its Asian peers as U.S. dollar was seen tumbling against the basket of major currencies soon after the GDP numbers were released for U.S., which showed sub-par growth for the first quarter.
This was seen putting pressure on the dollar Index,” said Abhishek Goenka, Founder and CEO, India Forex Advisors.
