The Indian rupee settled 10 paise lower at 71.81 against the US dollar on Wednesday, tracking weak Asian currencies and strengthening of the greenback overseas.
However, the decline in the domestic unit was capped by a rally in domestic stocks, forex traders said.
At the interbank foreign exchange market, the domestic currency opened weak at 71.80, then went on to hit a low of 71.91 against the US dollar during the day.
It, however, clawed back some of its lost ground to finally finish at 71.81, showing a fall of 10 paise over its previous close.
On Tuesday, the local unit had settled at 71.71 against the greenback.
