The rupee on Tuesday lost 24 paise to Rs 62.08 against the dollar in early trade on the Interbank Foreign Exchange due to appreciation of the US currency overseas.
Increased demand for the dollar from importers also put pressure on the rupee.
Dealers attributed the rupee's fall to dollar gains against other currencies overseas and a lower opening of the domestic equity market.
The rupee had gained nine paise to close at nearly one- month high of 61.84 against the dollar in yesterday's trade after the government said in the interim Budget that fiscal deficit this financial year will be capped below target.
Meanwhile, the BSE benchmark Sensex fell by 21.38 points, or 0.10%, at 20,442.68 in early trade today.