Dealers attributed the rupee's weakness to dollar gains.
The local currency had gained 7 paise to close at 66.57 in Monday's trade.
The currency had gained by 88 paise in the past seven days.
Rising for the fifth straight session, the rupee gained 9 paise at 66.31 against the dollar in early trade on Monday.
The local currency had gained 17 paise to close at three-month high of 66.37 in Wednesday's trade.
The ECB on Thursday cut its main refinancing rate to zero from 0.05 per cent.
The rupee had gained 2 paise to close at 66.33 in Tuesday's trade.
IT stocks on Wednesday rose as much as 3 per cent in an otherwise weak stock market after sentiments turned buoyant amid the rupee sinking to an all-time low of 60.35 against the dollar, as the stronger US currency boosts the sales of software firms in rupee terms.
The US dollar turned expensive against a basket of global currencies which hit the rupee sentiment
The recovery in equities in the early session capped the rupee's fall.
Liquidity in the banking system has slipped into a deficit for the first time in three weeks, prompting banks to borrow the largest quantum of funds from the Reserve Bank of India (RBI) in around a month and a half. The key catalyst for the sudden tightening in liquidity was due to outflows on account of advance tax payments, which occur towards the end of a quarter. Analysts also cited other factors such as a currency leakage and possible interventions by the RBI in the foreign exchange market, which contributed to the tighter liquidity conditions.
The rupee, which has been in virtual free fall over the past few days, recovered slightly to close at Rs 83.20 to the dollar in the inter-bank market after State Bank of Pakistan intervened by selling about USD 40 million in the foreign exchange market. Experts have attributed the fall of the rupee's value to speculation as well as a high demand for dollars from importers and general consumers.
Strong month-end demand for the US currency mainly from oil importers along with currency futures expiry related purchases predominantly weighed heavily on the forex market and haunted investor sentiment.
Weakness of the dollar against other currencies overseas gave the rupee more muscle.
The onshore yuan trading band is tightly controlled.
Overall forex market sentiment suffered a sudden reversal of fortune contrary to expectation largely moving in line with local equities, reversing all early strong gains.
Rupee gained on increased selling of the US currency by banks and exporters
The stubbornly high global crude oil prices are opening up a can of worms to heightened inflation risks and likely to disrupt government's fiscal maths along with deteriorating global financial conditions.
Even the persistent rise in equity market failed to restrict the rupee's fall.
Grasim Industries Ltd has raised $50 million through a five-year loan at 93 basis points over the London Inter-Bank Offered Rate, or LIBOR, a spokeswoman for the company said on Friday.
There was fresh selling of the American currency by banks and exporters
The ballooning of crude prices has significantly increased the country's oil import bill and it can also lead to a worsening of the current account deficit and fiscal deficit for the domestic economy.
Funds parked by Indian individuals and firms in Swiss banks, including through India-based branches and other financial institutions, declined by 11 per cent in 2022 to 3.42 billion Swiss francs (nearly Rs 30,000 crore), annual data from Switzerland's central bank showed on Thursday.
The rupee has been under immense pressure due to a host of reasons including soaring crude oil prices, sustained foreign fund outflows and widening current account deficit.
The rupee rose by 12 paise to close at 79.78 against the US dollar on Monday due to a weak dollar in overseas markets and an improved appetite for riskier assets. Stronger regional currencies also supported the rupee sentiment ahead of the US Fed policy decision on Wednesday. Weak domestic equities and FII outflows, however, capped sharp gains. At the inter-bank forex market, the local unit opened at 79.86 against the greenback and moved in a range of 79.70 to 79.87 in the day trade.
The S&P BSE Sensex ended up 28 points at 25,844 and the Nifty50 ended flat at 7,915.
Investors will remain cautious ahead of F&O expiry.
Funds parked by Indian individuals and firms in Swiss banks, including through India-based branches and other financial institutions, jumped to a 14-year-high of 3.83 billion Swiss francs (over Rs 30,500 crore) in 2021 on a sharp surge in holdings via securities and similar instruments while customer deposits rose as well, annual data from Switzerland's central bank showed on Thursday.
The focus shall also be on consolidation of public debt and reducing rollover risk through active switch/buyback operations.
'The banking sector appears to be on course to recovery,' declares the RBI governor.
He endorsed transparency and financial stability in addition to issues related to inclusive growth and development, write Puran Singh and Nupur Pavan Bang.
If India was able to provide additional and new information about people and entities that figure on stolen lists, they may consider it to exchange information
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