The rupee depreciated for the second day on Thursday closing down by 12 paise at 63.42 against the US currency due to month-end dollar demand from importers and fall in stocks markets.
Persistent capital outflows too put pressure on the rupee, a dealer said.
"Rupee continued to trade low for the second consecutive day taking cues from month-end dollar demand from oil importers and weak local equities which has already corrected more than 7% due to weak corporate earnings and concern over taxes," Veracity Group CEO Pramit Brahmbhatt said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced sharply lower at 63.52 a dollar from previous close of 63.30 and dropped further to a low of 63.7250 during the day.
Later, it recovered to a high of 63.38 before finishing at 63.42, revealing a fall of 12 paise or 0.19%.
On Wednesday, it closed down by 15 paise or 0.24%.
"The trading range for the Spot USD/INR pair is expected to be within 63.10 to 63.80," Brahmbhatt said.
{{/usCountry}}"The trading range for the Spot USD/INR pair is expected to be within 63.10 to 63.80," Brahmbhatt said.
{{/usCountry}}The benchmark BSE Sensex on Thursday plunged by 214.62 points.
Foreign Institutional Investors (FPIs) sold shares worth USD 119.12 million on Wednesday, taking a total to USD 610.63 million during the first three days of the week, as per Sebi data.
On weekly basis, it snapped two-week of losing string and concluded the truncated week with a gain of 14 paise or 0.22%.
The Forex market will remain closed on Saturday, May 1, 2015, on account of 'Maharashtra Day'.