The Indian rupee on Wednesday lost 68 paise to end the day at 79.21 against the dollar as investors' confidence was dampened by subpar macroeconomic data. The local currency at the interbank foreign exchange market depreciated when it opened at 78.70 and continued to decline until it reached a low of 79.21 for the day. 

The rupee increased by 53 paise on Tuesday to settle at a more than one-month high of 78.53 against the U.S. dollar, marking its greatest single-day gain in almost 11 months.

The downside was mitigated, nevertheless, by the drop in crude oil prices and foreign fund inflows. According to exchange data, FIIs continued to be net purchasers on Tuesday, purchasing shares worth Rs825.18 crore.

The benchmark for world oil, Brent crude futures, dropped 0.95 percent to USD 99.58 a barrel.  The dollar index, which measures how strong the dollar is relative to a basket of six different currencies, decreased 0.05 percent to 106.19.
Analysts said,  depressing macroeconomic statistics from India might keep the rupee under pressure to fall. However, falling crude oil prices and international investment inflows could limit the negative effects.

Ahead of the Reserve Bank of India's (RBI) monetary policy announcement at the end of the week, traders might continue to be cautious.

On the Indian share market front, the BSE Sensex closed 214.17 points or 0.37 percent higher at 58,350.53 points on the domestic equities market, while the larger NSE Nifty gained 42.70 points or 0.25 percent to 17,388.15.

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