Besides increased dollar demand from importers, a lower opening in the domestic equity market put pressure on the rupee, forex dealers said.
They, however, added that euro and yen's rise against the dollar in the overseas markets capped rupee's losses.
The rupee had lost 6 paise to end at 55.34 against the dollar in yesterday's volatile session.
Meanwhile, the BSE benchmark Sensex fell by 20.43 points, or 0.12 per cent, to 17,613.02.
