The US dollar ended dearer against the rupee at 66.71/72 per dollar, but the pound sterling dropped to Rs 81.03/05 at the Interbank Foreign Exchange (forex) market here today.
Earlier, the rupee erased its gains and was trading weak at 66.70 as the dollar steadied, with investors broadly taking a “wait-and-see" approach ahead of a US labour market report later in the week, which follows a European Central Bank policy meeting.
Also, a weak domestic equity dampened the rupee sentiment.
Continuing with its strong rally, the rupee earlier in the day rose to a four-month high of 66.62 against the US dollar on increased selling of the American currency by banks and exporters.
It hovered in a range of 66.73 and 66.62 before quoting at 66.70, down 3 paise at 4.55 pm local time.
The local currency had ended 4 paise higher at 66.67 yesterday, rising for the second consecutive day.
Domestic shares ended lower for a second consecutive session on Wednesday as caution prevailed ahead of state elections results, including that of Uttar Pradesh, and a US Federal Reserve policy meeting next week.
The broader NSE index closed down 22.6 points or 0.25 per cent at 8,924.30, while the benchmark BSE index ended 97.62 points or 0.34 per cent lower at 28,901.94.