Besides, increased demand for dollar from importers and banks weighed on the local currency, forex dealers said. However, they said, a higher opening in the domestic equity market, capped the rupee's fall.

The rupee had closed 8 paise lower at 63.90 against the US dollar in yesterday's trade due to steady demand for the greenback from importers amid sliding equities.

Meanwhile, the benchmark BSE Sensex recovered by over 111 points in morning trade today after two sessions of sharp losses, on value-buying by investors amid a firming trend at other Asian markets.

The NSE Nifty was up 24.95 points, or 0.30 percent, at 8,160.05 in morning trade. Brokers said value-buying in recently beaten-down blue-chip stocks, coupled with a firming trend at other Asian markets tracking overnight gains in the US following solid private sector job data, influenced sentiment here.

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