The rupee ended marginally lower on Friday against its previous close of 81.62 per dollar
At the interbank foreign exchange, the domestic unit declined to touch 81.62, registering a fall of 0.6 paise over its previous close.
On Thursday, the rupee appreciated by 23 paise to close at 81.70 against the US dollar.
Forex traders said the American currency has retreated from its elevated levels post Federal Open Market Committee minutes.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.23 percent to 105.82 in early trade.