Dealers attributed the rupee's weakness to dollar gains.
The local currency had gained 7 paise to close at 66.57 in Monday's trade.
The currency had gained by 88 paise in the past seven days.
Rising for the fifth straight session, the rupee gained 9 paise at 66.31 against the dollar in early trade on Monday.
The local currency had gained 17 paise to close at three-month high of 66.37 in Wednesday's trade.
The ECB on Thursday cut its main refinancing rate to zero from 0.05 per cent.
The rupee had gained 2 paise to close at 66.33 in Tuesday's trade.
The recovery in equities in the early session capped the rupee's fall.
The US dollar turned expensive against a basket of global currencies which hit the rupee sentiment
IT stocks on Wednesday rose as much as 3 per cent in an otherwise weak stock market after sentiments turned buoyant amid the rupee sinking to an all-time low of 60.35 against the dollar, as the stronger US currency boosts the sales of software firms in rupee terms.
Weakness of the dollar against other currencies overseas gave the rupee more muscle.
Strong month-end demand for the US currency mainly from oil importers along with currency futures expiry related purchases predominantly weighed heavily on the forex market and haunted investor sentiment.
Rupee gained on increased selling of the US currency by banks and exporters
The stubbornly high global crude oil prices are opening up a can of worms to heightened inflation risks and likely to disrupt government's fiscal maths along with deteriorating global financial conditions.
The ballooning of crude prices has significantly increased the country's oil import bill and it can also lead to a worsening of the current account deficit and fiscal deficit for the domestic economy.
Even the persistent rise in equity market failed to restrict the rupee's fall.
The rupee has been under immense pressure due to a host of reasons including soaring crude oil prices, sustained foreign fund outflows and widening current account deficit.
Overall forex market sentiment suffered a sudden reversal of fortune contrary to expectation largely moving in line with local equities, reversing all early strong gains.
There was fresh selling of the American currency by banks and exporters
The onshore yuan trading band is tightly controlled.
The S&P BSE Sensex ended up 28 points at 25,844 and the Nifty50 ended flat at 7,915.
Investors will remain cautious ahead of F&O expiry.
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