Snapping two days of gains, the rupee ended down by 21 paise at 48.96/97 against US currency on fresh month-end dollar demand from importers amid a weak dollar overseas.
The dollar demand was so strong that renewed capital inflows could not stem the rupee fall, dealers said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit opened weak at 49.08/09 a dollar from overnight close of 48.75/76 due to early weakness in equities.
However, a sudden gust of dollar buying by importers, mainly oil refiners, to meet their monthly requirements weighed on the rupee and it fell back to a low of 49.15.
It concluded the day at 48.96/97, a fall of 0.43 per cent. In last two days, it had gained by 70 paise or 1.42 per cent.
