The Indian rupee fell to a fresh two-week low on Thursday due to the dollar's strength against major currencies, and demand for the US unit from oil companies facing soaring crude prices, traders said. Foreign fund outflows also pulled down the local currency.
The partially convertible rupee ended at 46.3050/3200, weaker than Wednesday's close of 46.23/24.
"I think the rupee is taking small steps to reach the big number of 46.50," a dealer with a foreign bank said.
By 1138 GMT, the dollar bought 115.40 yen and was at $1.2693 against the euro.
Oil surged to a record high near $76 a barrel on Thursday due to geopolitical tensions. India imports 70 percent of its oil and high prices could depress the rupee further as oil companies need more dollars to buy crude.
The rupee's fortunes have largely swayed with foreign investments into the stock market this year.