However, a higher opening in the domestic equity market and the US dollar's weakness against other currencies overseas, capped the rupee's fall.
Forex dealers said fresh demand for the dollar also put pressure on the rupee.
The rupee ended two paise higher at 59.25 in yesterday's session on range-bound movements.
Meanwhile, the benchmark BSE Sensex rose 110.69 points, or 0.43 per cent, to 25,686.90 in early trade today.
Markets turn flat after firm opening
Rupee inches up two paise vs dollar to 59.27
Jhunjhunwala picks up 1 cr shares of Edelweiss Financial
Rupee trims initial gains, still up by 14 paise vs dollar
Murthy ends second innings with a masterstroke