Mumbai: The rupee fell by 16 paise to 65.65 against the dollar in early trade due to fresh demand for the American currency from importers.
Besides, a weak opening in the domestic equity market put pressure on the rupee, dealers said.
A weakness in the U.S. dollar against major world currencies in the global market, however, limited the rupee fall, they said.
The rupee had recovered by 15 paise to 65.49 against the U.S. dollar in yesterday's trade on fresh selling of the American currency by banks and exporters.
Meanwhile, the benchmark BSE Sensex fell by 101.82 points, or 0.38 percent, to 26,451.10 in early trade today.
