The rupee resumed lower at 62.38 per dollar from the previous closing level of 62.14 at the interbank foreign exchange market. It firmed up to 62.26 before ending at 62.41, a loss of 27 paise or 0.43 per cent.
The rupee had climbed to a three-week high of 62.14 yesterday.
There was strong dollar demand from oil refineries. Global crude oil prices fell to a six-month low on a surge in US stockpiles.
"Month-end oil-related dollar demand kept rupee under pressure, though local equities traded positively," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).
The 30-share benchmark Sensex rose 114.65 points, or 0.56 per cent, to 20,534.91. Overseas investors sold a net Rs 48.53 crore of shares yesterday, according to provisional stock exchange data.