Continuing its losing streak for the second straight session, the rupee on Friday closed at a fresh three-and-a-half month low of 63.56 against the US dollar after plunging to 63.64 in intra-day trade on sustained demand for the American currency from importers amid weaker equities.
After touching an intra-day low of 63.64, lowest in the current calendar year, the Indian rupee recovered some lost ground, still showing a fall of 24 paise to close at 63.56 against the US dollar.
Continued selling by foreign investors on worries regarding the controversial tax issue too kept the rupee under pressure.
In the New York market, the dollar edged lower against the euro on Thursday after data showed first-time claims for US unemployment benefits rose more than expected last week.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly better at 63.30 a dollar from previous close of 63.32 and moved in a range of 63.21 and 63.64.
Previously, it had concluded at 63.57 on January 6, 2015.
On weekly basis, it has plunged by 120 paise or 1.92 pct.
