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The rupee ended at 66.71 after hitting a four-week high of 66.55 in intra-day trade today.
Buying of the greenback by banks and exporters in the latter half of trade and lower equities weighed on the rupee.
The rupee opened higher at 66.59 and traded between 66.55 and 66.78 during the day.
Yesterday, the rupee had firmed up by 12 paise to close at a four-week high of 66.65 on sustained selling of the American currency by banks and exporters amid persistent foreign capital inflows.
The benchmark BSE Sensex plunged 257.20 points or 0.95 per cent to 26,763.46.
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