The rupee dropped by 8 paise to close at 68.94 against the US currency, extending its fall for a second straight day due to sustained dollar demand from importers even as local equities hit a record high.
The rupee resumed sharply lower at 68.96 compared to 68.86 previously at the interbank foreign exchange market. It lost ground to hit a session low of 69.08 in mid-morning deals due to steady dollar demand, but managed to cut losses short and ended at 68.94, down by 8 paise or 0.12 per cent.