The rupee took a hefty knock after a brief two-day recovery against the US currency and slumped by a whopping 34 paise to end at a fresh seven-week low of 64.89 on the back of frantic dollar demand.
This is the lowest closing for the home currency since April 3, when it had closed at 65.03 against the greenback.
Heavy month-end dollar demand along with sustained foreign capital outflows also weighed on the forex trade.
The local unit resumed substantially weak at 64.64 from overnight closing value of 64.55 at the Interbank Foreign Exchange market (forex) here.
It crumbled under intense dollar pressure to hit an intra—day low of 64.90 in late afternoon deals before concluding the day at 64.89, revealing a steep loss of 34 paise.
On Monday, the rupee had firmed up by 9 paise to 64.55 on dollar unwinding amid continued political worries in the US.
As per provisional exchange data, foreign investors sold shares worth Rs 321 crore on net basis yesterday.
Currency Call: Rupee can remain range bound, but with a bearish bias