Falling for the third straight session, the rupee declined by 7 paise to 82.74 (provisional) against the US dollar on Wednesday, as intense selling pressure in domestic equities and a strong greenback overseas dented the sentiment.

Forex traders said the continued inflow of foreign capital and a steep decline in crude price, however, restricted the fall in the domestic unit.

The dollar was trading at an elevated level of 104 as a positive development on the US debt ceiling bill boosted investors' sentiment.

On the domestic front, traders were keeping an eye on the annual GDP data to be released later in the day.

At the interbank foreign exchange, the domestic unit opened weak at 82.71 against the dollar. The currency touched an intraday low of 82.75 and a high of 82.64.

The unit finally settled at 82.74 (provisional) against the dollar, registering a fall of 7 paise over its previous close.

On Tuesday, the rupee closed at 82.67 against the US currency. The currency has been registering a fall for the past three sessions.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.34 per cent to 104.54.

Brent crude futures, the global oil benchmark, fell 1.69 per cent to USD 72.30 per barrel.

In the domestic equity market, the 30-share BSE Sensex declined 346.89 points or 0.55 per cent to 62,622.24. The broader NSE Nifty fell 99.45 points or 0.53 per cent to 18,534.40.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they purchased shares worth Rs 2,085.62 crore, according to exchange data.

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