The Indian benchmark S&P BSE Sensex today eased by 14.59 points, or 0.05 per cent after touching its all-time intra-day peak.
Forex dealers said besides the dollar gaining against other currencies in the global markets on the back of a strong US economy, increased demand for the American unit from importers weighed on the rupee but a higher opening in the domestic equity markets, capped the fall.
The domestic currency has already dropped 44 paise, or 0.67 per cent, in the previous two sessions.
The dollar index was up by a whopping 0.45 per cent against basket of six major global rivals, which also pushed the rupee to log its biggest daily loss since September 15.
After a a steep fall last week, the rupee has closed slightly stronger against the dollar.
The rupee had plummeted to over three-month low of 63.32.
The rupee recovered from more-than three months low of 63.15 in early trade on dollar selling by banks.
The Fed's decision on tapering its monthly $85 billion bond-buying programme is expected later on Wednesday.
The rupee rose by 4 paise at 66.88 against the US dollar in early trade on Wednesday.
A strengthening dollar overseas also kept the rupee under pressure amid demand from importers. Goldman Sachs followed JP Morgan, HSBC and Nomura in cutting India's economic growth forecast and also said it expects the rupee to touch 72 against the dollar in the next six months.
The rupee has declined by 24 paise in four days of losses.
The rupee on Monday continued its upward march against the US dollar for the third day, firming up by another 10 paise to 66.00 on fag-end selling of the American currency by banks and exporters.
The rupee appreciated 7 paise to 79.74 against the US dollar in early trade on Thursday as a positive trend in domestic equities supported the local unit. However, a strong American currency overseas and forex outflows restricted the rupee's gain, dealers said. At the interbank foreign exchange, the rupee opened at 79.72 against the American dollar, then went lower to trade at 79.74 against the greenback in early deals, registering a gain of 7 paise over the last close.
The rupee had gained 28 paise against the American currency to settle at nearly two-month high at 66.74 in Monday's trade.
The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was sharply higher by 0.62 per cent at 93.96.
The domestic currency has tumbled by 104 paise, or 1.63 per cent, in last six trading days.
Dealers attributed the fall to the dollar's gains after China devalued yuan, which pushed up demand from importers for the US currency.
SBI managing director PK Gupta told reporters that the rupee has been faring better than many of its peers, including the Turkish, Argentinean, and Indonesian currencies.
Forex dealers said besides robust month-end demand for the American currency from oil importers, dollar's strength against its rival currencies on expectations of rising interest rates amid lingering Sino-US trade tensions, weighed on the domestic currency.
On Wednesday, the rupee had dropped by 26 paise.
The rupee on Friday snapped its two-day gaining streak against the US dollar.
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On Monday, the rupee gained 16 paise.
The rupee on Thursday surged by 22 paise to close at a fresh three-week high of 61.75 against the US currency.
The rupee hovered in a narrow range of 62.20 and 62.28
Rupee rises against the dollar for 4th straight session.
The rupee ended weaker against the greenback on domestic worries.
Tracking a steep fall in local share market, the Indian rupee on Tuesday washed out initial gains and ended with a loss of 16 paise
The Indian rupee on Monday reacted downwards by 12 paise to log nearly one-week closing low of 63.41 against the Greenback.
The rupee continued its downslide for the second session in a row, depreciating by 20 paise to close at more than one-week low of 62.51 against the greenback.
Rupee rebounds from one-week low, up 9 paise against dollar.
The rupee resumed higher at 61.13 per dollar as against yesterday's closing level of 61.40 at the Interbank Foreign Exchange and strengthened further to 60.90 per dollar before ending at 61.05 per dollar, a gain of 35 paise or 0.57 per cent.
Rupee retreats from 3-week high against dollar ahead of Budget.
The global brokerage firm further said that BoP would be INR-supportive.
Dollar gained against major currencies overseas.
A strong dollar overseas and some hesitancy in local stocks, however, limited the rupee rise.
Sustained inflows of foreign funds supported the rupee
The rupee has gained by 21 paise or 0.31 per cent in last two days
The rupee on Friday resumed lower at 60.25 a dollar from previous close of 60.19 at the Interbank Foreign Exchange market.
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