The Indian rupee lost ground against the U.S. dollar in evening deals on Thursday, as rising geopolitical tensions across the globe instilled a sense of caution among traders.

The benchmark BSE Sensex closed 66.72 points or 0.25 percent lower at 26,307.98, while the broader Nifty index dropped 21.95 points or 0.27 percent to 8,082.40.

The rupee that ended Monday's trading at 67.85 against the greenback slipped to a new 2-week low of 68.08. The rupee may locate support near the 69.00 mark.

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