The rupee on Monday fell by 21 paise to 61.48 in early trade on the Interbank Foreign Exchange market due to fresh dollar demand from banks and importers, amid strengthening of the US currency overseas.
Forex dealers said besides dollar gaining against other currencies in the global markets, increased demand for the American currency from importers also influenced the rupee.
They said, however, a higher opening in the domestic equity market capped the fall.
The rupee had lost 4 paise to close at 61.27 against the dollar on Friday.
The BSE benchmark Sensex rose 57.56 points, or 0.28 per cent, to trade at 20,940.45 in early trade on Monday.