Rupee ends at 53.81 vs USD, down 4 paise

After logging a three-month high of 53.38, the rupee on Tuesday erased initial gains to close four paise down at 53.81 against US dollar following late weakness in local stocks and sustained demand of the American currency.

A sluggish dollar movement in overseas markets and continued capital inflows restricted the rupee fall to a major extent, forex dealers said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed higher at 53.61 a dollar from overnight close of 53.77. Helped by positive factors including uptick in stocks, the rupee touched a three-month high of 53.38, a level not seen since October 23, 2012 when it had logged an intra-day high of 53.34.

It, however, succumbed to heavy profit-booking in equities after mid-session coupled with dollar selling by exporters to touch a low of 53.88. The rupee finally concluded a tad lower at 53.81, a fall of four paise or 0.07 per cent.

The Indian benchmark BSE Sensex, which was in positive terrain till late morning deals, closed down by 120.25 points breaking straight three-session rally.