Breaking its three-day rising trend, the rupee retreated from its one-week high to close at 67.16 against the US currency on fresh bouts of dollar demand from importers.
A renewed strength in dollar, which climbed to a two-month high against other major currencies, predominantly pressurised the local unit.
However, expectations of strong capital inflows amid surging local equities helped the domestic currency in recouping some losses, a forex dealer said.