Dealers attributed the rupee's fall to increased demand for the US currency from importers.
However, a higher opening in the domestic equity market capped the losses.
The rupee had closed yesterday at a fresh 16-month high of 65.36 against the greenback in the face of dollar unwinding from exporters and banks.
Meanwhile, the benchmark Sensex recovered by 56.92 points, or 0.19 per cent, to 29,575.66 in early trade.
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