The dollar strengthening against major currencies overseas also put pressure on the rupee which struggled to recover despite over $125 million inflows coming into domestic stocks, forex dealers said.
At the Interbank Foreign Exchange market, the domestic currency commenced weak at 55.68 a dollar from Monday's close of 55.57 against the dollar.
However, it later recovered to a high of 55.64 but failed to sustain the momentum and dropped to a low of 55.99, on heavy dollar demand from importers, mainly oil refiners to meet their month end requirements, before concluding at 55.96, a fall of 0.39 paise, or 0.70
Re falls for 6th day, down 4 paise at 55.63
Rupee partially recovers after sinking below 56-mark
No need for nervousness, FM assures stock markets
Re slumps to fresh 6-month low at 55.46