Mumbai, Sep 26: Snapping its three-session gaining streak, the rupee on Wednesday lost 15 paise to close at 53.51 against the US dollar, on fresh demand for the American currency from importers.
Forex dealers said a firm dollar overseas also weighed on the rupee. However, sustained capital inflows capped rupee's fall to some extent, they added.
At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed weak at 53.50 a dollar as against last close of 53.36.
It moved in a narrow range of 53.42-53.63 before ending at 53.51, showing a fall of 15 paise, or 0.28 per cent from its previous close.
In the last three sessions, the local unit has risen by 106 paise, or 1.95 per cent.
Meanwhile, the BSE benchmark Sensex on Wednesday closed lower by 62.24 points, or 0.33 per cent, at 18,632.17.
Foreign institutional investors (FIIs) continued their buying spree and they picked up shares worth USD 850.98 million on Tuesday, taking the total to almost USD 3.3 billion in the current month till September 25 and almost USD 15.59 billion in 2012 so far, as per Sebi data.
Renewed dollar from importers, mainly oil refiners, to meet their month-end needs put pressure on the rupee, dealers said.
"The demand from oil importers at lower level and risk aversion phenomenon in global markets weighed on the rupee. However, the strong commitment for policy reforms continued to cap such weaknesses," Alpari Financial Services (India) CEO Pramit Brahmbhatt said.
The dollar index was up by 0.22% against a basket of six major global currencies while the New York crude oil was trading below USD 91 a barrel in Europe on Wednesday.
