The rupee depreciated by 5 paise to 54.74 against the US dollar in early trade on Thursday on the Interbank Foreign Exchange due to appreciation of the American currency against the euro and other currencies in overseas markets and a weak opening in the domestic equity
market.
Dealers attributed the rupee's fall to dollar gains against the euro overseas and sustained demand for the American currency from importers.
The rupee had closed 8 paise lower at 54.69 a dollar in Wednesday's trade on heavy demand for the American currency.
Meanwhile, the BSE benchmark Sensex was down by 34.22 points, or 0.17%, at 19,783.41 in early trade on Thursday.