Mumbai: Snapping its 4-day winning spree, the rupee slipped by 7 paise to close at 63.59 against the US dollar Tuesday on fresh demand for the American currency from banks and importers on the back of a firm greenback overseas.
Besides, foreign capital inflows into equity markets restricted the rupee's loss against the dollar, forex dealers said.
The rupee resumed lower at 63.58 as against yesterday's level of 63.52 at the Interbank Foreign Exchange (Forex) market.
It hovered in a range of 63.65 and 63.55 during the day before finishing at 63.59, showing a loss of seven paise or 0.11 percent.
It had gained 74 paise, or 1.16 percent, in previous four sessions.
Oil prices fell in Asia with the possible return of Iranian crude to the global market, stoking further concerns over a supply glut, analysts said.
The dollar index was trading higher by 0.82 percent against its major global rivals today.
In the overseas market, the dollar gained against the yen and the euro today as risk-taking sentiments strengthened following signs of progress in Greece's bailout talks and upbeat US economic data.
Meanwhile, the benchmark BSE Sensex rose by 74.16 points, or 0.27 percent, to settle at 27,804.37.
Veracity Group CEO Pramit Brahmbhatt said, "Rupee slipped against the US currency on sustained month-end dollar demand from oil importers which forced the local unit to trade weak."
The trading range for the spot USD/INR pair is expected to be within 63.25 to 64.00.
In the forward market, the premium for the dollar continued to decline on sustained receivings from exporters.
The benchmark six-month premium payable in November eased to 197-199 paise from 199-201 paise yesterday while those maturing in May, 2016 also closed lower at 426-428 paise from 426.5-428.5 paise.
The RBI fixed the reference rate for the dollar at 63.6406 and for the euro at 71.6275.
The rupee moved up further against the pound sterling to 100.39 from 100.43 previously and advanced further against the euro to 71.31 from 72.00 previously.
The domestic unit rose against the Japanese unit to 51.39 per 100 yen from 51.51 previously.
