The rupee depreciated 15 paise to quote at a fresh one-week low of 67.29 against the US dollar in the evening trade on sustained demand for the American currency from importers and bankers.
Besides, disappointing macro economic data with industrial production contracting by 0.8 per cent in April and the retail inflation surging to 5.76 per cent in May also weighed on the domestic unit.
However, the dollar’s weakness against other currencies overseas and early gains in stock markets capped the rupee’s losses, forex dealers said.
The domestic unit opened weak by 2 paise at 67.16 against the previous close of 67.14 at the Interbank Foreign Exchange market today.
It hovered in a range of 67.29 and 67.11 before quoting at 67.25, down 11 paise at 4.10 pm local time.
Meanwhile, the benchmark BSE Sensex ended down 1.06 points or 0.00 per cent at 26,395.71.
In the overseas market, the yen surged to its strongest level against the euro in more than three years on Tuesday as the chances of Britain voting next week to leave the European Union grew, pushing investors towards the security of Japan and other traditional safe havens.