The rupee lost 23 paise to 62.43 against the dollar in early trade on Thursday, at the Interbank Foreign Exchange market due to increased demand for the American currency from importers.
Forex dealers said a weak opening in the domestic stock market also put pressure on the local currency but dollar's weakness against other currencies limited the fall.
The domestic currency had lost 36 paise, its biggest loss in three weeks, to close at 62.20 versus the dollar on Tuesday. The forex and money markets remained closed on Wednesday on account of "Chhatrapati Maharaj Jayanti".
Meanwhile, the benchmark BSE Sensex was down 83.42 points, or 0.40 per cent, at 20,639.55 in early trade on Thursday.