The rupee weakened by 33 paise to 72.96 against the US dollar on increased demand for the American currency from importers as crude oil prices hit a four-year high. Brent crude breached the $81 a barrel mark by surging over 3 per cent to $81.28 a barrel.
Traders said besides sustained demand of the US currency from importers and dollar’s strength against some currencies overseas ahead of US Federal Reserve’s meet, a weak trend in the domestic equity market too weighed on the rupee. On Monday, the local currency had ended sharply lower by 43 paise at 72.63 as crude prices jumped ahead of impending US sanctions on Iran.
Meanwhile, on a net basis, foreign funds sold shares worth Rs 523.94 crore, while domestic institutional investors bought shares to the tune of Rs 1,527.67 crore on Monday. Meanwhile, the Sensex was trading lower by 59.28 points or 0.16 per cent at 36,245.74.