Mumbai, Nov 14: Tracking stock markets, the Indian rupee closed down by 18 paise at 50.30/31 against the US dollar due to fag-end demand from banks and importers.
The rupee resumed higher at 49.94/95 per dollar at the Interbank Foreign Exchange (Forex) market and touched a high of 49.90. It had closed at 50.12/13 on Friday.
However, the early gains could not be maintained and the local currency settled lower at 50.30/31 per dollar.
The dollar index was up by over 0.5 per cent against a basket of currencies, while global crude oil was trading below USD 98 a barrel in the European market today.
Forex dealers said rupee fell because there was a strong demand for the US dollar from banks and importers, particularly oil refiners.
Meanwhile, stock markets traded bearish and closed on a weak note. The Bombay Stock Exchange benchmark Sensex closed at 17,118.74, down 74.08 points.
The rupee premium for the forward dollar finished higher on fresh paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in April settled up at 104-106 paise from last Friday's close of 100-102 paise and far-forward contracts maturing in October also ended higher at 168-170 paise from 159-161 paise previously.
The RBI fixed the reference rate for the US dollar at Rs 50.0845 and for the euro at Rs 68.8325.
The rupee fell back against the pound sterling to end at Rs 80.25/27 from Rs 79.84/86 previously and reacted downwards to Rs 68.77/79 from Rs 68.39/41 per euro.
However, it also dropped further against the Japaneses yen to 65.39/41 per 100 yen from the last close of Rs 64.77/79.