Dealers attributed the rupee's fall to fresh demand for the US currency from importers, but a higher opening in the domestic equity markets and dollar's weakness against some currencies overseas capped the losses.
Yesterday, the rupee had extended gains for the second straight day by moving up another 3 paise to close at 66.90 per dollar on sustained selling of the US currency by banks and exporters.
Meanwhile, the benchmark BSE Sensex recovered by 109.11 points, or 0.38 per cent, to 28,264.67 in the opening trade today.