The Indian rupee snapped an eight-day strengthening streak to end weaker on Thursday, falling past the 45 per dollar level breached the previous day, on local corporate demand for a resurgent dollar.
The rupee ended at 45.0650/0750 per dollar, weaker than the previous close of 44.9800/9850, which was a one-month closing high.
"Demand from a large state-run oil firm combined with the dollar's strength overseas pushed the rupee down," said a forex dealer at a private sector bank. "But dollar inflows from the non-deliverable forward offshore market were good and checked sharp losses."
The dollar hit a 2-1/2 week high against the euro in overseas trade on Thursday, as Federal Reserve officials appeared to hint that US interest rates could rise more aggressively than previously thought.
But continued foreign fund inflows into local shares were likely to support the rupee in the near term, traders said.
The rupee gained about a percent in the eight sessions to Wednesday, supported by data which showed foreign funds have invested some $135 million in Indian shares so far in June.
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