Extending its losses for the second day in a row, the rupee fell by 19 paise to a more than 3-week low of 63.77 against the US dollar on persistent demand for the American currency from banks and importers on the back of higher greenback in the overseas market.
Banks and importers preferred to increase their dollar position in view of higher greenback in the overseas market, Forex dealers said.
Besides, fall in equity market affected the rupee value to some extent, they added.
The rupee resumed lower at 63.65 against previous closing of 63.58 at the Interbank Foreign Exchange (Forex) market and dropped further to 63.80 before finishing at more than 3-week low of 63.77, showing a loss of 19 paise, or 0.30%.
The rupee had last ended at 63.84 on June 29, 2015. It has dropped by 22 paise, or 0.35%, in last two days.
The local currency moved in a range of 63.63 and 63.80 per dollar during the day.The dollar index, which tracks the greenback against a basket of major currencies, was down by 0.43%.
Oil prices were mixed in Asia in early trade, with WTI stuck below USD 50 a barrel after a rise in US stockpiles added to concerns over a supply glut, analysts said.
At the New York market, the dollar ended higher against most of its other rivals, after National Association of Realtors reported that US existing-home sales in June grew at the fastest pace since February, 2007.
Meanwhile, the benchmark BSE Sensex dropped by 134.09 points, or 0.47%, to 28,370.84.