The Indian rupee fell on Tuesday in line with other Asian currencies as higher oil prices and a tepid stock market weighed on sentiment. Dealers said dollar inflows from corporates were offset by all-round demand.
The partially convertible rupee ended at 46.49/50 per dollar on Tuesday, down from the previous close 46.4450/4550.
"The rupee weakened due to dollar's strength in Asia," a dealer with a foreign bank said, adding that oil companies were also buying dollars.
The local currency has closely mirrored the fortunes of the stock market this year. Foreign investors have trimmed their exposure in Indian equities to about $3.5 billion so far this year compared to $10.7 billion in the whole of last year.
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