Tracking weak stock markets, the rupee on Monday fell back by 16 paise to end at 54.17 against the US dollar as global investors chased the American currency on fears that a bailout of Cyprus will spark off fresh problems in the troubled Eurozone.
At the Interbank Foreign Exchange (Forex) market, the rupee resumed weak at 54.28 a dollar and immediately touched a low of 54.35.
However, late dollar selling by exporters helped the rupee recover some ground and logged a high of 54.11 before settling at 54.17, still a fall of 16 paise or 0.30 per cent.
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Last Friday, it had risen by 34 paise or 0.63 per cent.
The dollar index was up by 0.55 per cent against a basket of six major global currencies as investors preferred to exit from euro and went for “safe heaven” dollar.