The rupee on Monday ended lower by 9 paise at 62.31 against the US currency on fag-end dollar demand from banks and importers amid sharp fall in stock markets.
Gains in dollar against major world currencies in overseas markets also put pressure on the domestic unit, traders said.
The rupee resumed higher at 62.20 per dollar as against the last close of 62.22 per dollar at the Interbank Foreign Exchange (Forex) Market. It firmed up further to 62.15 per dollar on initial selling of dollars by exporters in view of good foreign capital inflows.
However, the rupee washed out its initial gains and fell to 62.32 per dollar on fag-end dollar demand from banks before finishing at 62.31 per dollar, showing a loss of 9 paise or 0.14% from its Friday's close.
It hovered in a range of 62.15 per dollar and 62.32 per dollar during the day.
Veracity Group CEO Pramit Brahmbhatt said, "Rupee traded range bound today and ended slightly weak as the demand for US dollar rose amid expectation of increase in US interest rates before June." The dollar index was up by 0.60% against a basket of its major global rivals.
The benchmark BSE Sensex on Monday fell by 256 points to settle below 29,000 level due to late selling mainly in banking, oil & gas and FMCG stocks.
Selling of dollar by some banks helped rupee to trade firm against the strong dollar in the afternoon, analysts said. The trading range for the Spot USD/INR pair is expected to be within 61.80 to 62.70, they added.