Forex dealers said besides dollar's gains against the yen and euro on improved economic data, increased demand from importers for the American currency also put pressure on the rupee.
They said, however, rupee's decline was restricted by persistent rise in domestic equities.
The rupee fell by 30 paise to close at 66 against the US currency in the previous session.
Meanwhile, the BSE benchmark Sensex rose by 121.18 points, or 0.64 per cent, to trade above 19,000 at 19,007.31 in early trade today.