The rupee dived 20 paise to settle at 73.31 (provisional) against the US dollar on Thursday, tracking muted domestic equities and a rebound in the American currency.
At the interbank forex market, the domestic unit opened flat at 73.10 against the greenback. It swung between a low of 73.31 and a high of 73.08 during the session. It finally settled at 73.31, down 20 paise against its previous close.
On Wednesday, the rupee had settled at 73.11 against the American currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.26 per cent to 89.75.
On the domestic equity market front, the BSE Sensex ended 80.74 points or 0.17 per cent lower at 48,093.32, while the broader NSE Nifty declined 8.90 points or 0.06 per cent to 14,137.35.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 483.64 crore on a net basis on Wednesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, advanced 0.13 per cent to USD 54.37 per barrel.
