The rupee lost 26 paise against the US currency in early trade in line with a meltdown in stock markets.
At the Interbank Foreign Exchange (Forex) market, the rupee fell by 26 paise to 46.51 a dollar. The rupee had closed lower by 28 paise at 46.25/26 a dollar in the previous session.
Dealers said the domestic currency fell against dollar due to capital outflows after a meltdown in stock markets.
The dollar continued to rise against major world currencies which also weighed on the rupee sentiment, they added.
Meanwhile, the Bombay Stock Exchange index Sensex tumbled by 434.46 points to 15,790.49 points in early trade.