The rupee on Friday lost 30 paise to Rs. 54.66 against the US dollar in early trade on the Interbank Foreign Exchange due to appreciation of the American currency against the other currencies overseas.
Increased demand for the dollar from banks and importers also put pressure on the rupee.
Dealers attributed the rupee’s fall to dollar gains against the euro overseas but a higher opening in the stock market, capped the fall.
The rupee had closed 50 paise lower at Rs. 54.36 a dollar in Thursday’s trade on heavy capital outflows as Budget failed to cheer investor sentiment.