The Indian rupee lost 27 paise to 61.89 against the US dollar in early trade today at the Interbank Foreign Exchange due to appreciation of the American currency against euro overseas.
Indian rupee put under pressure by increased demand for the US dollar from importers.
Dealers attributed the Indian rupee's fall to the US dollar's gains against the euro overseas but a higher opening in the domestic stock market capped the fall.
The Indian rupee had closed 12 paise higher at 61.62 US dollar in yesterday's trade on selling of the American currency by banks and exporters.
Meanwhile, the BSE Sensex rose by 48.46 points, or 0.23 per cent, at 21,023.25 in early trade today.