Frantic dollar demand from corporates along with an aggressive hedging strategy adopted by importers in the wake of the currency volatility predominately took a toll on the domestic unit despite moves by the central bank to stabilise the currency.
Silver, platinum and palladium all declined.
Rising for the second session, the Indian rupee on Thursday climbed by 50 paise to nearly four-week high of 62.67 against the greenback on persistent selling of dollars by banks and hopes of capital inflows in view of a strong equity market.
Rupee down 13 paise to 66.72 against dollar
Rupee ends day stronger against the dollar.
Adequate dollar supply gave a boost to the local currency
On a relative worldwide scale of 0-100, the search value index of the rupee stood at 100 in August so far.
In forward market, premium for dollar continued to fall due to persistent receivings from exporters.
The rupee had gained 10 paise to close at 60.11 against the dollar in Tuesday's trade on fag-end selling of the US currency by banks and exporters.
Indian industry will have to deal with high raw material prices, and user industries will see their costs rising though with a lag in some cases.
The rupee fell to more than one-month low of 65.75 against the US dollar on Thursday.
The rupee had lost 31 paise to close at one-month low of 61.07 on Wednesday on sustained dollar demand from banks and importers.
India's foreign exchange reserves declined by a whopping $4.343 billion to $367.646 billion.
The dollar's weakness against rivals overseas supported the rupee.
Sterling fell to a 31-year low against the dollar on Monday as a sell-off stemming from Britain's decision to quit the European Union gathered pace, with the euro also pressured as Brexit clouded the future of the rest of the bloc.
The dollar's weakness against other currencies overseas and a higher opening in the domestic equity market supported the rupee, forex dealers said.
The rupee had lost 26 paise to close at 60.16 against the dollar yesterday on fresh dollar demand from banks and importers in view of the US currency gaining overseas and weakness in local equities.
Bullish dollar sentiment overseas alongside sluggish domestic equity market predominantly impacted the domestic currency
Even the persistent rise in equity market failed to restrict the rupee's fall.
The domestic currency has dropped by 62 paise or 0.93 per cent in four trading days.
Weakness in dollar in the overseas market also boosted the rupee value
Increased demand for the American unit from importers and banks, affecting the value of the rupee
Significant investors in government bonds FIIs have been net sellers since May 22.
The rupee is expected to become more jittery and choppy in the near-term
The rupee has dropped by 60 paise or 0.89 per cent in the last three trading days.
The trading range for the Spot USD/INR pair is expected to be within 66.20 to 67.00.
This is the highest closing level since May 11, 2016 when the rupee had finished at 66.56
BofA-ML revised its end-2015 rupee-dollar forecast to 60 from 64 earlier.
Persistent fall in crude oil prices affected the market sentiment
Inflows from Europe, falling crude oil to come to the rescue if rupee cracks against the dollar.
The US dollar's weakness against some currencies overseas capped the losses.
The rupee showed range-bound movement on Wednesday as investors preferred to stay cautious in the unsure market.
The rupee has fallen 0.8 per cent so far this year, hitting a one-month low on Friday, hurt by a stronger dollar globally as well as caution ahead of key economic data this month.
In the forward market, the premium for dollar moved up on fresh paying pressure corporates.
Rupee is under pressure against the dollar say currency watchers.
Weakness of dollar in the global markets and foreign capital outflows also affected the rupee sentiment.
The Indian rupee ended slightly lower at 64.01/02 per dollar compared with Tuesday's close of 63.98/99 per dollar due to month-end dollar demand by importers.
The rupee has depreciated 2.35 per cent in the past three months and one per cent in the past month, despite strong capital flows and falling oil prices.
Some experts, however, see a silver lining in the fall and said the volatility has come down sharply and that bodes well for the Indian currency
Bucking a strong trend in share market, the Indian rupee on Monday gave up all its initial gains and slipped 18 paise to close at 61.94 against the Greenback on rising dollar demand from importers.
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