Reuters Market Eye - The rupee falls and is trading at 63.75/76 versus last close of 63.38/39, snapping five days of gains. Earlier in the session, the rupee rose to 62.92, its highest since August 19.
A large state-run bank has been a big USD buyer largely on behalf of defence.
Dealers also cite early buying by a large private petrochemical company.
Local stocks are down 0.8 percent on profit taking.