The rupee today dropped by 34 paise to finish at nearly six-week low of 49.84/85 against the US currency on sustained dollar demand from importers amid weakness in equity markets.
Persistent dollar demand from importers in view of higher crude oil in overseas market mainly affected the rupee value against the dollar, a dealer said.
The dollar rose against other major currencies which also impacted rupee sentiment, the dealer said.
The rupee resumed lower at 49.72/73 per dollar at the Interbank Foreign Exchange (Forex) market as against Friday's level of 49.50/51 per dollar, and dropped further to 49.96, before ending at 49.84/85 per dollar. It had ended at 50.08/09 on January 25, 2012.
The domestic currency hovered in a range of 49.69 and 49.96 during the day.
Meanwhile, crude oil prices rose in Asian on signs of stronger US economic growth, analysts said.
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The BSE benchmark Sensex ended lower by 274 points or 1.55% from its last weekend's level.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said rupee continued to trade weak as oil importers and defence payments increased the dollar demand.