The rupee on Thursday washed out all last three sessions of gains and depreciated by 37 paise to close at almost four-week low of 62.16 against the Greenback on fresh dollar demand from importers and some banks.
Slowdown in capital inflows following Christmas holidays, too weighed on the rupee while better local equities and weak dollar overseas failed to restrict the rupee fall, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 61.85, which was also the day's high, a dollar from previous close of 61.79.
Later, it gradually moved down further to a low of 62.17 before settling at 62.16, a net fall of 37 paise or 0.60 per cent.
In past three sessions, it had risen by 35 paise or 0.56 pct.
Dealers attributed the fall in the rupee value to dollar demand from importers, mainly oil refiners, to meet their month end requirements.
The Indian benchmark Sensex on Thursday closed up by 41.88 points or 0.20 per cent while FIIs picked up shares worth Rs 40.67 crore on Tuesday as per provisional data with stock exchanges.
The dollar index, in a thin trade following Christmas holidays, was down by a mere 0.03 pct.
Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services, India said,"Today rupee traded weak against the dollar, with dollar buying pressure from oil companies, however mild gains in the local equity market prevented further losses. After yesterday's gain the dollar index which measures the greenback against a basket of six other currencies is trading weak which will help rupee to trade below 62 levels. The trading range for the spot USDINR pair is expected to be within 61.50 to 62.50."
