The rupee lost 35 paise to trade at nearly one-month low of 55.20 against the US dollar in early trade today at the Interbank Foreign Exchange market on continued demand for the American currency from importers.
Forex dealers said besides dollar's gain against the euro in the overseas markets, increased demand for the American currency from importers and a lower opening in the stock market put pressure on the domestic currency.
The BSE benchmark Sensex fell by 115.50 points, or 0.59%, to 19,338.42 in the early trade.
The rupee had lost 30 paise to close 54.85 against the US dollar yesterday due to fresh demand for the US currency and some weakness in equities.