At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed slightly weak at 54.75 a dollar from previous close of 54.73. It touched high of 54.53 on initial dollar selling by exporters and some banks.
Early rise in stocks amid foreign funds inflow in equities also boosted the rupee sentiment in morning. However, it fell back sharply to a low of 54.83 before concluding at 54.81 on late dollar demand from importers.
Yesterday, it had recovered after slipping below 55-level intra day tracking a massive drop in stock market.
"Rupee which hit the lowest level in two months yesterday showed slight recovery today on the back of the better than expected WPI numbers as inflation fell below 5 per cent, i.E. within the RBI comfort zone. However, rupee erased earlier gains owing to global factors, where Euro was seen sustaining below USD 1.30 and dollar index was trading above 83-level," said Abhishek Goenka, Founder & CEO, India Forex Advisors.
The Indian benchmark BSE S&P Sensex today recovered by 30.62 points or 0.16 per cent while FIIs picked up shares worth Rs 421 crore today as per provisional data with bourses.