The rupee fell marginally by 5 paise to 49.27 against the US dollar at the Interbank Foreign Exchange market in early trade today, following increased demand for the American currency from importers.
However, a higher opening in the equity market capped the rupee’s losses.
Dealers said apart from dollar’s gains against the euro, increased demand for the American currency from importers mainly weighed on the rupee sentiment.
The domestic unit had gained eight paise to close at a one-week high of Rs 49.22/23 against the US currency yesterday.
Meanwhile, the BSE benchmark Sensex rose 56.79 points or 0.31 per cent to 18,202.04 in early trade today.