Mumbai: Continuing its weakening trend for the second straight session, the rupee on Thursday fell by another 10 paise to 63.51 against the US dollar on persistent demand for the American currency from banks and importers in line with higher greenback overseas.
Sustained foreign capital inflows into equity market in view of second consecutive gain in Sensex restricted the rupee's fall against the dollar, a forex dealer said.
In a bid to streamline the FDI structure, the government on Thursday introduced a composite foreign investment cap by clubbing all forms of overseas investments to define sectoral limits.
Oil prices rose in Asia on Thursday on easing concerns about the impact of the expected flood of Iranian supplies on the global market following the country's historic nuclear deal.
US benchmark West Texas Intermediate for August delivery rose 26 cents to $53.29 and Brent crude for August climbed 10 cents to $58.61 a barrel in late morning trade.
The rupee resumed lower at 63.50 per dollar as against the Wednesday's closing level of of 63.41 at the Interbank Foreign Exchange market and declined further to 63.54 before finishing at 63.51, showing a loss of 10 paise or 0.16 per cent.
It has lost 12 paise or 0.19 per cent in two days.
The domestic unit hovered in a range of 63.54 and 63.47 per dollar during the day. The dollar index was trading higher by 0.43 per cent against its major global rivals.
The dollar strengthened on Wednesday after Federal Reserve Chairwoman Janet Yellen said economic conditions will likely warrant a Fed interest-rate hike this year during an appearance before the House Financial Services Committee.
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