The Indian rupee depreciated for the second session in a row by 30 paise to close at 51.71/72 against the greenback following late weakness in local stocks amid sustained dollar demand from importers.
Firm dollar overseas too weighed on the rupee while continued capital inflows put some break on the fall.
At the Interbank Foreign Exchange (Forex) market, the local currency, after overnight holiday, resumed higher at 51.34/35 a dollar from previous close of 51.41/42 on initial firmness in stocks and hopes of increased capital inflows.
RUPEE FALL: Cars to get costlier from January as carmakers mull price hikeHowever, it trade in a narrow range till late afternoon trade, but fell sharply at the fag end on late profit-booking in local stocks amid good dollar demand from importers.
It touched a low of 51.73 before concluding at 51.71/72, showing a fall of 0.58 per cent. On Monday, it had dropped by 0.21 paise.
In a volatile trading, the Indian benchmark
Sensex on Wednesday ended higher by 71.73 points or 0.43 per cent on late selling.
At the the day's high, it was up by almost 200 points.
The dollar index, an indicator of six major currencies, was up by nearly 0.15 per cent while New York crude oil was trading above $101 a barrel in European market today.
Mr. Pramit Brahmabhatt, CEO, Alpari Financial Services (India) said,"Rupee depreciated by over half per cent, mainly taking cues from global markets where dollar traded strong against the major currencies. Local equities closed on a strong note which helped Rupee to cap the dollar gain."
"Looking at the global scenario one can expect Rupee to trade near 52.00 levels in coming days and the trading range for the Rupee will be 51.25 to 51.75 tomorrow," he added.
Special 
