Mumbai, November 08: The rupee today weakened by 16 paise to close at 44.37/38 against the US currency in line with fall in local stocks amid strong dollar overseas.
Dollar demand from importers too weighed on the rupee, dealers said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit opened weak at 44.25/26 a dollar from last close of 44.21/22.
It later moved in a range of 44.2450 and 44.4150 before concluding the day at 44.3750/3850 a dollar.
Dealers attributed fall in rupee to weak equities, expecting possibility of fresh capital outflows after a record inflows in 2010 so far and firm dollar in European markets today.
The BSE benchmark Sensex today ended lower by 152.58 points, or 0.73 per cent.
The dollar index, gauging of six major currencies, was up by 0.
–Agencies