The rupee on Tuesday depreciated over 40 paise to close at 65.18 taking cues from weakness in local equities as investors continued to stay away from the uncertain market.
Also the sustained dollar demand from oil importers further forced rupee to depreciate over half per cent for the day.
The trading range for the Spot USD/INR pair is expected to be within 64.70 to 65.70.
In forward market today, premium for dollar dropped further on sustained receivings from exporters.
The benchmark six-month premium payable in March dropped further to 194-196 paise from 196.25-198.25 paise yesterday while forward Sept 2016 also declined further to 405-407 pasie from 408.5-410.5 paise.
The RBI fixed the reference rate for the dollar at 65.0215 and for the Euro at 73.9164.
The rupee recovered against the pound sterling to finish at 99.28 from the last close from 99.44 previously while dropped further against the euro to 74.17 form 73.63.
It also dropped further against the Japanese currency to settle at 54.40 per 100 yen from 53.90.he rupee declined by 17 paise to 64.92 against the dollar in early trade today on increased demand for the US currency from importers.
Besides, early losses in domestic equity markets weighed on the rupee, dealers said.
The dollar was weak against major world currencies which capped rupee losses, they added.
The rupee had shed 1 paisa to close at 64.75 against the US currency in the previous session.
