Mumbai (PTI): Recovering part of initial losses, rupee on Tuesday ended lower by six paise to 42.60/61 against dollar following weak Asian equity markets.

In quiet trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened lower at 42.59/61 a dollar and dropped further to a loof 42.74 before recovering to end the day at 42.60/61, a loss of 6 paise over the previous close.

Sluggishness in Asian equity markets, including India, weighed upon the rupee sentiment.

The BSE benchmark index, Sensex, was down by nearly 205 points at close today.

Expectations of slow-down in capital inflows due to high inflation and oil prices surging above USD 127 a barrel also have a negative impact on rupee sentiment, traders said.

Inflation has risen to 7.83 per cent for the week ended May 3, 2008, mainly due to increase in prices of essential food items and some manufactured products.