The rupee had surged 161 paise, to close at a more than one-month high of Rs 61.77 against the dollar in yesterday's trade, supported by the US Federal Reserve's surprise decision on retaining its stimulus programme.
Dealers attributed the rupee's fall to a cautious approach adopted by participants ahead of the RBI's mid-quarter monetary policy review later in the day and a weak opening in the domestic equity market but dollar's weakness against other currencies overseas, restricted the fall.