Mumbai: The rupee fell by 26 paise to a five-year low of 47.22 against the US dollar on Wednesday on increased fund outflows and increased demand from importers.

The rupee, however climbed 0.8 per cent to 46.63 per dollar as of the 5 pm close.

The rupee hit the current level last on 2 June 2003.

The domestic unit, which breached the 47-mark for the first time in two years on Monday and closed at 46.96/97 plunged by another 26 paise to 47.22 against the US dollar.

The Forex market was closed on Tuesday on account of half-yearly book closing of banks.

The rupee fell earlier on speculation companies increased purchases of dollars needed to meet import costs and repay overseas debt after the local currency had its biggest quarterly loss in 16 years. It fell 9.2 per cent in the three months to September, its third quarterly loss and biggest since March 1992.