The rupee fell by 24 paise to 53.80 against the dollar in early trade today at the Interbank Foreign Exchange on month-end demand for the American currency from oil importers.
Besides, euro's weakness against the dollar overseas on euro zone concerns also put pressure on the local unit, forex dealers said.
However, a higher opening in the stock market capped the rupee's losses, they added.
Meanwhile, the BSE benchmark Sensex rose by 85.16 points, or 0.46%, to 18,710.50.
The rupee had gained 16 paise to end at 53.56 against the dollar in the previous session on Thursday on rise in local equities amid fresh selling of the American currency by exporters.
The forex market remained closed on Friday on account of 'Idd-Ul-Zuha'.
