The rupee finished the month with a total loss of 2% against the dollar The rupee closed at 73.95 against the dollar on Wednesday, the lowest level in nearly three weeks.
Demand for the greenback from importers and sustained foreign fund outflows, along with strength in the US currency overseas, dragged the rupee lower.
Domestic equity markets finished the day with strong gains, after see-sawing between gains and losses amid concerns on a rift between the Reserve Bank of India and the government.
The rupee settled 19 paise higher from the lowest point of the day after the government stressed that the central bank has autonomy.
The rupee had closed 22 paise lower at 73.68 against the dollar on Tuesday.