The rupee pared its early gains to settle down by 6 paise at 75.72 against the US currency due to concerns over fresh trade tensions between the EU and the US and rising COVID-19 cases.
Forex traders said factors like weak domestic equities and India-China border tension also weighed on investor sentiment.
The rupee opened at 75.61 against the US dollar, but lost ground and closed at 75.72, registering a fall of 6 paise over its previous close.
It had settled at 75.66 against the greenback on Tuesday.