The Indian rupee weakened on Tuesday as losses in the local share market raised expectations of more foreign fund outflows and a stronger dollar overseas weighed on sentiment. The partially convertible rupee ended at 42.37/38 per dollar, 0.5 percent weaker than 42.155/165 at close on Monday.
"There was more of share index related buying than anything else today. We had major dollar demand from foreign banks and a mild demand from some corporates," said the chief dealer with a state-run bank.