The rupee lost 14 paise to 54.12 against the dollar in early trade on Wednesday at the Interbank Foreign Exchange largely due to month-end demand for the American currency from oil importers.
Forex dealers said increased dollar demand from oil importers mainly put pressure on the local unit.
However, stronger euro against the dollar overseas and a higher opening in the domestic equity market capped the rupee’s losses, they added.
Meanwhile, the BSE benchmark Sensex rose by 43.24 points, or 0.23 per cent, to 18,474.09.
The rupee had gained 10 paise to end at 53.98 against the dollar in the previous session on heavy US dollar sales.
