Forex dealers said weakness in local equities cast a shadow on the rupee. Dollar losing in overseas markets didn't impact the fall of the local currency, they added.
Dollar short-covering by some banks was triggered at 62.45-62.50 level pulling down rupee further at the fag-end.
"The month-end dollar demand, downbeat data from China and Fed’s tapering plan are all seen putting pressure on the rupee," said Abhishek Goenka, CEO of India Forex Advisors.
The Federal Open Market Committee, responsible for open market operations in the US, is meeting for two days on January 28 and January 29.
At the Interbank Foreign Exchange market, the local unit resumed lower at 62.12 a dollar from last close of 61.93.
It attempted a recovery at 62.07, but soon fell to a low of 62.73 before settling at 62.66, a fall of 73
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