The rupee exended losses for the second consecutive day against the American currency, slipped by another 10 paise to close at 66.46 per dollar on persistent dollar demand from banks and importers on the back of higher dollar in the overseas market.
Fresh foreign capital outflows also affected the market sentiment.
Foreign portfolio investors (FPIs) sold net Rs 910.85 crore worth of shares on Tuesday, according to provisional exchange data.
The domestic unit resumed lower at 66.40 per dollar as against Tuesday’s closing of 66.36 at the Interbank Foreign Exchange (Forex) market.
It hovered in a range of 66.3450 to 66.5075 during the day before ending at 66.46 per dollar, showing a loss of 10 paise or 0.15 per cent.
The currency has dropped by 13 paise or 0.20 per cent in two days.
Overseas, the US dollar firmed up against its major rivals in early Asian trade, buoyed by a rise in US yields after upbeat consumer spending data kept alive hopes that the US Federal Reserve would raise interest rates at its two-day meeting.
Meanwhile, the benchmark BSE Sensex rose by 258.04 points or one per cent to close at 25,963.97.