 "Rupee continues to reel, breaches 65 level")
The rupee on Thursday fell slightly below the 65 level to the dollar, breaching the level for the first time since September 2013, as it continued to reel after China devalued the yuan earlier this week.
Traders said the Reserve Bank of India had likely sold dollars at around the 65 level to slow the rupee's fall.
It failed to maintain its initial gains against the American currency and was quoting 22 paise lower at 65 per dollar on fresh dollar demand from banks and importers.
The rupee resumed higher at 64.72 as against yesterday's closing level of 64.78 at the Interbank Foreign Exchange (Forex) Market and firmed up to 64.63 on initial dollar selling by exporters on the back of recovery in the equity market.
It moved in a range of 64.63 and 64.99 during the morning trade.
In the overseas market, the dollar suffered from a broad-based weakness against rival currencies yesterday as investors are worried that China's devaluation of the yuan could delay an expected US interest rate hike.
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Meanwhile, the Indian benchmark Sensex rose 147.70 points, or 0.54%, to 27,659.96.