The rupee was trading at 54.37 against the dollar in afternoon trade on the Interbank Foreign Exchange.
On Tuesday, the rupee had closed at 54.26.
Dealers attributed the rupee’s fall to dollar gains against the euro and yen overseas boosted by solid US economic data and a bleak outlook for the troubled Euro-zone.
Besides, a lower opening in the stock market also put pressure on the rupee, they said.
The rupee had gained three paise to close at 54.26 yesterday in line with strong local equities amid some dollar selling by exporters.
