Tracking weak stock markets, the rupee on Tuesday fell by 25 paise to close at 53.72 amid fresh dollar demand, mainly from oil refiners.
At the Interbank Foreign Exchange (Forex) market, the domestic unit opened better at 53.40 a dollar from overnight close of 53.47. It immediately touched a high of 53.34 on initial rise in local stocks but the gains vanished quickly.
Dollar demand from importers, mainly oil refiners, to meet month-end dollar needs weighed on the rupee, said forex dealers.
Though FIIs pumped in around $47 million in stocks on Tuesday, the rupee failed to recover due to overwhelming dollar demand from oil importers as Brent North Sea crude for delivery in December fell to $109.21 a barrel.
The rupee fell back to a low of 53.84, before concluding better at 53.72 — a fall of 25 paise or 0.46 per cent.