The rupee came under a renewed selling pressure and retreated from a nearly 17-month high to end at 65.44, falling by 14 paise against the American unit on fresh dollar demand from importers.
Overall forex market sentiment turned sour after fresh bouts of global jitters took the centre-stage in the midst of mounting uncertainty over possible delay of Donald Trump's proposed economic growth agenda. Domestic bourses endured a miserable day after recent record breaking rally and plunged more than 1 per cent, spooked by a massive sell-off on Wall Street overnight.
Forex dealers attributed the fall in the home currency to increased demand for the dollar from importers and corporates. However, dollar’s self weakness limited rupee’s decline. The Indian rupee resumed sharply lower at 65.57 from Tuesday's closing value of 65.30 at the Interbank Foreign Exchange (Forex) Market.
It remained under pressure throughout the day with currency moving in a tight range of 65.3725 and 65.58 largely trading in line with local equities and global developments. After recouping some early steep losses, the rupee ended at 65.44, revealing a loss of 14 paise, or 0.21 per cent. The rupee had gained 6 paise on Wednesday.