Forex dealers said besides weakness in the euro against the dollar overseas on euro-zone worries, month-end demand for the American currency from importers also weighed on the rupee's value but a higher opening in equity markets capped the losses.
The rupee ended 20 paise higher at close at 55.18 against the US currency yesterday.
The domestic currency had gained as much as 82 paise to a dollar in the last three days, extending a turnaround of sentiment from last Thursday when the rupee was at its all-time weakest point at 56.38 to a dollar.
Meanwhile, the BSE benchmark index Sensex today rose by 83.20 points, or 0.51 per cent, to 16,500.04 in early trade.