The domestic unit had lost 58 paise to close at 61.83 against the dollar in the previous session on weak local stocks and sustained demand from importers for the greenback. Besides, dollar's strength against other Asian currencies overseas on speculation the US Federal Reserve may scale back its stimulus programme weighed on the rupee, dealers said.

They said negative domestic fundamentals, such as weak Industrial production data which contracted by 1.8 percent in October 2013 and retail inflation climbing to a nine-month high of 11.24 percent in November, too put pressure on the rupee.

Meanwhile, the benchmark BSE Sensex fell by 163.25 points, or 0.78 percent, to 20,762.36 in morning trade.


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