Mumbai: The Indian rupee fell by 16 paise to Rs 53.18 per US dollar in early trade on the Interbank Foreign Exchange on Wednesday due to month-end demand for the American currency from importers.
In addition, gains posted by the US dollar against Asian currencies overseas and a lower opening in the domestic equity market put pressure on the rupee.
The rupee had closed 31 paise lower at Rs 53.02/03 against the US currency in yesterday's trade on fresh month-end dollar demand from importers amid weakness in the local equity market.
Dealers said increased month-end demand for the dollar from importers, a subdued opening in the equity market and dollar gains against other Asian currencies overseas mainly weighed on the rupee sentiment.
The BSE benchmark Sensex fell by 32.90 points, or 0.21 percent, to 15,841.05 in opening trade on Wednesday.