The rupee extended its losses to 55.58/59 versus its close of 55.53/54 after hitting 55.37, the highest in over a week, on the back of dollar demand from oil firms.
Traders said absence of any large dollar inflows following a US holiday on Monday is adding to the upward pressure on the the rupee.
Gains in the domestic share market, however, providing some resistance to the pair at current levels. The main share index is trading up 0.4 per cent.
