Domestic currency had gained 28 paise to close at a fresh 16-month high of 65.41 yesterday.
Mumbai: Reversing its 4-day climb, the rupee fell 24 paise to 65.65 against the dollar today as the American currency got some of its lure back among banks and importers.
The dollar's strength overseas weighed, but a higher opening in domestic equities cushioned the impact.
The rupee had gained 28 paise to close at a fresh 16-month high of 65.41 yesterday after the US Fed stuck to its stance of a gradual approach on future rate hikes.
The Sensex rallied 238.77 points, or 0.80 per cent, to 29,824.62 in early part of the session.