After touching a two-week high in early trade, rupee on Wednesday closed 12 paise lower against the US dollar at 54.30 due to fall in local stock markets and renewed dollar demand from importers.

At the Interbank Foreign Exchange (Forex) market, the rupee started better at 54.15 a dollar as against previous close of 54.18. It improved further to an intra-day two-week high of 54.02, level not seen since February 28.

Dealers attributed early rally in the rupee to sustained dollar selling by exporters and some banks as also increased capital inflows as FIIs infused over Rs 300 crore in equities today as per provisional data with stock exchanges.

Weakness of dollar in the overseas market in early trade also boosted the rupee value, they added.

However, the rupee later turned negative to hit a low of 54.38 on bearish local bourses and fresh dollar demand from importers. It finally closed the day at 54.30, a fall of 12 paise or 0.22 per cent.

Yesterday, it had gained 23 paise or 0.42 per cent.

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