Snapping a four-day gaining spree, the rupee today fell by 30 paise to close at 61.35 against the dollar on fresh demand for the US currency from banks and importers due to firm dollar overseas and sharp fall in local equities.

The local currency rupee resumed lower at 61.15 against the dollar as against yesterday’s closing level of 61.05 at the Interbank Foreign Exchange (Forex) and dropped further to 61.36 before concluding the day at 61.35, a loss of 30 paise or 0.49 per cent. It had gained by 70 paise, or 1.13 per cent, in the last four days.

It moved in a range of 61.11 and 61.36 per dollar during the day.

“Rupee traded weak today taking cues from strong dollar overseas and weak local equities. After depreciating for four continuous weeks, rupee posted its first weekly gain this week,” said Pramit Brahmbhatt, CEO, Veracity Group.

Meanwhile, foreign portfolio investors (FPIs) continued pulling out from domestic markets and sold shares worth Rs 719.77 crore today.

In the New York , the US dollar traded higher against its major rivals yesterday trade after the eye-catching plunge in German exports raised fears of a recession in Europe’s largest economy.

Crude oil prices fell to a two-year low in the Asian trade as weak economic data from Germany underscored concerns over a global economic slowdown and its impact on energy demand.

In Tokyo market, the dollar steadied against the euro and yen today, though lower U.S. yields capped its rebound after the Federal Reserve’s dovish undertones sapped the Greenback’s recent strength.

The BSE benchmark Sensex dropped sharply by 339.90 points 1.28 per cent to finish at 26,297.38.

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