The rupee weakened to 64.11 after hitting a fresh three-month high of 64 as caution set in ahead of the release of the minutes from the Reserve Bank of India's policy meeting held earlier this month.

In the opening trade, the domestic unit went up 4 paise to 64 against the dollar. It hovered in a range of 64.11 and 64 before quoting at 64.08, down 4 paise at 4.35 pm local time.

The rupee lost its momentum as domestic equities turned weak. The 30-share BSE index Sensex ended down 59.36 points or 0.18 per cent at 33,777.38 and the 50-share NSE index Nifty closed lower by 19 points or 0.18 per cent at 10,444.20.

The Sensex hit an all-time high of 33,956.31 by rising 119.57 points, or 0.35 per cent and the Nifty scaled a new peak of 10,494.45, up 31.25 points, or 0.29 per cent in early trade.

Yesterday, the rupee had gained 20 paise to close at a three-month high of 64.04, building on the momentum after the BJP’s win in Gujarat and Himachal Pradesh Assembly polls.

In the overseas market, the dollar was supported by expectations that the Trump administration's tax reforms would pass through the Congress, while the euro was underpinned by a sharp rise in German bond yields.

The dollar last stood at 113.01 yen, up 0.1 per cent on the day, having pulled away from Friday's low of 112.035, with last week's high of 113.75 seen as its next target.

Related Topics