The rupee fell back sharply after a brief rebound from its 29-month low to end at 67.83 against the US dollar following renewed demand for the greenback.
Fresh unwinding of long rupee bets by speculative traders ahead of the two-day Federal Reserve meet and robust month-end dollar demand from importers predominantly reflected on trading sentiment, despite sluggish dollar overseas.
The domestic unit commenced firmly higher at 67.54 against the weekend close of 67.63 at the forex market. Intraday, it hit a fresh low of 67.85 before finishing at 67.83, a loss of 20 paise, or 0.30 per cent.