The rupee was trading weak 3 paise at 63.62 in the evening session as the dollar hovered near its highest in over a week against a basket of major currencies as the market’s focus shifted from Greece to prospects for higher US interest rates.
Dealers attributed the rupee's fall to the dollar’s gains against other currencies overseas and increased demand from importers for the US currency.
The rupee opened weak by six paise at 63.65 against the dollar at the Interbank Foreign Exchange market. It further weakened to 63.70 before being quoted at 63.62 at 4.40 pm local time.
The domestic currency hovered in the range of 63.58 and 63.70 in the evening trade.
Yesterday, the rupee had slipped by 7 paise to close at 63.59 on fresh demand for the American currency from banks and importers on the back of a firm dollar overseas.
Meanwhile, the benchmark BSE Sensex ended lower by 74.7 points or 0.27 per cent at 27,729.67.