Dollar on Wednesday gained 13 paise more as a result of which rupee closed at 57.15 on sustained month-end dollar demand from oil importers amid a firm US currency overseas.
At the Interbank Foreign Exchange market, the local unit opened slightly weak at 57.06 a dollar from overnight close of 57.02.
Persistent month-end dollar demand from importers, mainly oil refiners, kept the rupee under pressure as it moved in a tight range of 57.05 and 57.24.
The sentiment was against the rupee with the dollar rising against its rival euro in overseas markets.
The rupee finally closed at 57.15, a fall of 13 paise or 0.23 per cent.
Dealers said a positive trend in stocks with Sensex rising 61 points and renewed capital inflows as FIIs pumped in Rs 86.09 crore cushioned against
a sharper fall in rupee on Wednesday.
"Rupee was quite range bound today with no trigger for movement towards any direction.
"The market will take cue from the European summit which is beginning tomorrow," Hemal Doshi, currency strategist Geojit Comtrade said.
He added there was no intervention on Wednesday from the Reserve Bank of India.
The currency hit a record low of 57.32 on June 22 and has so far shed 7 per cent value against the dollar in 2012, making it worst performing currency in Asia.
The dollar index was trading up by 0.04 per cent against a basket of six major currencies while New York crude oil was quoting above $79 a barrel in the European market on Wednesday.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said," The overall structure for rupee is still weak and a move above 57.60 shall then target 58.00 levels in near term."
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Dollar on Wednesday gained 13 paise more as a result of which rupee closed at 57.15 on sustained month-end dollar demand from oil importers amid a firm US currency overseas.