The rupee ended 5 paise lower at 79.81 against the US dollar on Wednesday on the back of foreign investor inflows and corporate flows, dealers said.
At the interbank foreign exchange market, rupee ended at 79.81 as against 79.87 on the previous trading session against the US dollar.
"USDINR spot closed 5 paise lower at 79.81, thanks to FPI inflows and corporate flows. However, with global situation remaining challenging, with US Dollar Index and USDCNH both in uptrend, USDINR may continue to see dip buying," said Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives, at Kotak Securities Ltd.
"Bias remains upward till the US Fed chief's Jackson meeting on Friday. The range can be 79.60 and 80.10 on the spot," Banerjee added.
The dollar index, which gauges the strength of greenback against the basket of six major currencies, was at 108.835.
Brent crude oil price was at $101.36 a barrel by the closing of Indian market hours.
Sensex ended up 54.13 points or 0.09 per cent at 59,085.43, while the Nifty ended up 27.45 points or 0.16 per cent at 17,604.95 on Wednesday.