Falling for the third day in a row, the rupee today depreciated further by 23 paise to 62.83 against the dollar in early trade at the Interbank Foreign Exchange market on approaching month-end demand for the US currency from importers.
Besides, a weak opening in the local equity market put pressure on the domestic currency but the euro's gain against the dollar capped the losses, traders said.
The rupee had lost 37 paise to end at 62.60 against the dollar yesterday following demand for the US currency and a fall in local equities on further rate hike concerns.
Meanwhile, the BSE benchmark Sensex fell by 118.18 points, or 0.59 per cent, to 19,782.78 in early trade.
