Besides increased dollar demand, a weak opening in the domestic equity market ahead of first quarter GDP data also put pressure on the rupee, forex dealers said.
They, however, added that euro's gains against the dollar in the overseas markets capped rupee's losses.
Meanwhile, the BSE benchmark Sensex fell by 71.28 points, or 0.41 per cent, to 17,470.36.
The rupee had ended marginally down by 1 paise at 55.63 against the dollar on alternate bouts of buying and selling amid a fag-end recovery in equities in yesterday's session.