Snapping its two-day winning run, the rupee on Friday took a hefty knock by plunging 23 paise to close at 65.05 a dollar amid fresh demand for the US currency from importers, coupled with sluggishness in equities.
Fresh capital outflows and month-end dollar demand from importers, mainly oil refiners to meet their import requirements, largely kept the rupee under immense pressure.
Currency traders and speculators seemed reluctant to place aggressive bets and preferred to stay on the sidelines ahead of the weekend and also release of advance US GDP growth number later in the day.