The rupee commenced a tad higher at 58.92 a dollar from previous close of 58.93 and improved further to a high of 58.79 on initial dollar selling by exporters.
It, later turned negative and dropped to a low of 59.07 before concluding at 59.03 -- recording a fall of 10 paise or 0.17 per cent. Yesterday, it had gained 11 paise after depreciating 57 paise in the previous three sessions.
The Indian equity benchmark Sensex today tumbled by 322 points, or 1.31 per cent, while FIIs withdrew about Rs 523 crore as per provisioonal data.
Pramit Brahmbhatt, Veracity Group CEO, said: "Rupee traded weak as dollar demand from importers, mainly oil companies forced rupee to trade low its fourth daily fall in five days. Local equities also ended the day on a negative note which further dented the movement of rupee. The trading range for spot USD/INR pair is expected to be 58.50-59.50."
The dollar index was down by 0.15 per cent against its major global rivals, ahead of a report on US economy.
Meanwhile, premium for forward dollar recovered on fresh payments from banks and corporates.
The benchmark six-month premium payable in October inched up to 204.5-206.5 paise from 203.5-205.5 paise previously.
Far-forward contracts maturing in April, 2015 also rose to 441.5-443.5 paise from 429-431 paise.
The Reserve Bank of India fixed the reference rate for dollar at 58.8415 and for the euro at 80.0315.
The rupee edged up further against the pound to 98.66 from 98.67 previously while fell back to 80.36 per euro from 80.18. The rupee also turned negative to end down at 58.11 per 100 Japanese yen from 57.80.