Forex dealers said that besides dollar's gain against other currencies overseas, increased demand for the American currency from importers put pressure on the rupee.

They said, however, a higher opening in the domestic equity market, trimmed rupee's losses.

The rupee had rebounded from near record lows to close seven paise higher at 60.40 against the US dollar on Wednesday, after the government announced steps to boost exports and attract more foreign capital.

Meanwhile, the BSE benchmark Sensex recovered by 179.37 points, or 0.93 percent, to 19,525.07 in early trade on Thursday.