The rupee resumed lower at 55.75 per dollar as against yesterday's closing level of 55.68 at the Interbank Foreign Exchange (Forex) market.
With inflation data for May coming at 7.5 per cent, the rupee in line with the stock market lost further ground to touch 55.89, before finishing a tad higher at 55.80. This was a drop of 12 paise or 0.22 per cent.
Fresh dollar demand from banks and importers in view of uncertainty mainly affected the sentiment, forex dealers said.
Unlike yesterday when Euro supported rupee to snap a three-day losing streak, today 17-nation currency moved in a range against the dollar in Asian afternoon trading today at Hong Kong as trade was cautious ahead of Italian debt auction and Swiss National Bank's policy meeting later in the day.
The rupee briefly attempted to stage a recovery by hitting 55.60 per dollar intra-day but the momentum failed to sustain.
"Inflation data had a negative impact on domestic currency today. Also, fall of Sensex by around 200 points also weakened the rupee," said N S Venkatesh, Head of Treasury, IDBI Bank.
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