The rupee fell to 54.81/82 versus its previous close of 54.48/49 against the dollar, but trading was choppy ahead of the European Central Bank's policy decision due later in the day. The pair has so far moved in a wide range of 54.79 to 55.07.
The euro remains near a one-week low, with trading subdued. Traders say the lower investor demand seen at the auction of foreign investor limits in government and corporate debt on Wednesday also hurt the rupee after markets hoped strong interest would spark higher inflows.
The Indian currency breached the 55-level again and fell sharply by 56 paise, or over 1 percent, to 55.05 in early trade today due to increased demand for the greenback from banks and importers, amid a weak opening of the Indian stock markets.
