In tune with the sharp fall in local
stock market, the Indian rupee lost 48 paise to end the day at 49.79/80 against the
US dollar, snapping straight four sessions of gains.
Fresh dollar demand from importers, mainly oil refiners, to meet their month-end requirements weighed against the rupee sentiment, but signs capital inflows limited the fall to some extent, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed a bit higher at 49.30/31 a dollar from last Friday's close of 49.31/32.
But it moved downwards in the later part of the day and settled at 49.79/80, a steep fall of 48 paise or 0.97 per cent.
In last four trading sessions, the rupee had gained 139 paise or 2.76 per cent.
Meanwhile, the BSE benchmark index Sensex, plunged by nearly 371 points or 2.15 per cent on weak global cues and profit-booking.
The dollar index was up by over 0.5 per cent against a basket of currencies while New York crude oil was trading above $99 a barrel in European market on Monday.
According to markets regulator Sebi's data, FIIs have pumped in over $2.0 billion in equities and $3.1 billion in debt market this month till January 27.
The rupee premium for the forward dollar fell back on fresh receivings by exporters.
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