The rupee declined by 26 paise in early trade on Thursday to hit fresh four-month low of Rs 53.22 against the American currency on the Interbank Foreign Exchange due to firm dollar demand amid increased capital outflows.

Strong dollar gains against euro and other currencies overseas and a lower opening in the domestic equity market also put pressure on the rupee, a forex dealer said.

The rupee had closed 23 paise lower at nearly four—month low of 52.96/97 against the US currency in yesterday’s trade on strong dollar demand.

More In: Business | Markets