After a brief pause, the rupee today fell by 13 paise to end at 64.04 against the US currency on strong month-end dollar demand from importers. Stronger dollar sentiment overseas against the backdrop of Federal Reserve's decision to leave interest rates unchanged predominantly pressurised the local unit, a forex dealer commented.
Consistent unwinding by foreign investors from Indian equities and debt markets, too, weighed on the rupee.
The dollar hit multi-year highs against all other Asian currencies amid expectations of rate hike at its September policy meet and also US second-quarter growth data later in the day.
However, the local currency turned weak following good dollar demand from state banks, most likely on behalf of their institutional clients to hit a fresh intra-day low of 64.04, before ending down by 13 paise, or 0.20 per cent, at 64.04. It briefly touched a high of 63.92 during the trade.
The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up by 0.31 per cent at 97.52.
Meanwhile, Foreign portfolio investors (FPIs) sold shares worth a net Rs 186.24 crore yesterday, as per provisional data released by the stock exchanges.
The benchmark Sensex rallied by 141.93 points to end at 27,705.35.