The rupee had appreciated 0.7% in past two trading sessions The rupee declined by 53 paise, or 0.8 per cent, to close at 70.21 against dollar on Tuesday.
That marked first lower closing for rupee against greenback after two days of appreciation.
Concerns on widening of current account deficit on rising crude oil prices pulled rupee lower, say analysts.
Strength in dollar against major peers overseas also affected rupee.
The rupee had appreciated by 52 paise, or 0.7 per cent, in previous two trading sessions.