The rupee fell by 24 paise to 53.60 against the US dollar in early trade at the Interbank Foreign Exchange market on Wednesday as the American currency gained against euro in the global markets.
Forex dealers said besides strengthening of dollar against euro overseas on eurozone debt worries, rupee fell on increased month-end demand for the American currency from importers.
A weak opening in the domestic equity market also influenced the sentiment, they added.
The BSE benchmark Sensex fell by 86.10 points, or 0.46 per cent, to 18,608.31 in early trade.
The rupee had gained 11 paise to close at a fresh over 18-week high of 53.36 against the dollar in the previous session.