Halting its 8-day rising streak, the rupee traded lower by 13 paise at 66.32 against the dollar in early trade at the Interbank Foreign Exchange on month-end demand for the US currency from importers amid capital outflows.
The currency on Monday closed at 66.19, up by 2 paise.
Forex dealers said month-end demand for the American currency from importers mainly weighed, but the dollar's weakness against other currencies overseas and a higher opening of the domestic equity market capped the losses.
The rupee had gained 90 paise, or 1.34 per cent, in the past eight trading days.