The rupee erased earlier gains to fall to 55.24/25 versus its previous close of 55.14/15, tracking losses in domestic shares, while the euro faltered against the dollar and dropped to a six-week low against the yen. Traders said demand from oil firms was also helping the dollar.
The Indian currency will likely see resistance at 55.30-55.37, as exporters are expected to come in at those levels to sell dollars, traders say.
The BSE Sensex fell 0.7 percent, as split views emerged about whether the RBI will cut rates at its July 31 meeting as June headline inflation fell but core inflation remained steady from May. The euro faltered on concerns about eurozone debt and high peripheral bond yields.
