The rupee declined 9 paise to 65.10 against the dollar today after economic data showed the US economy in a more positive light.
Fresh demand for the American currency came in from importers and banks.
Traders said the dollar's renewed strength against other currencies overseas weighed on the rupee, but a higher opening in domestic equities limited the impact.
According to latest data points, the US economy is seen to be gradually gaining traction.
Yesterday, the rupee had made a smart comeback to end up 49 paise, or 0.75 per cent, at a fresh one-week high of 65.01, with investors taking a bullish stance on the economy even as the RBI kept key rates unchanged.
Meanwhile, the benchmark BSE Sensex rose 77.58 points, or 0.24 per cent, to 31,749.29 in early session.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)