The rupee declined for fourth day in a row by losing 15 paise to Rs. 55.36 per dollar in early trade today following sustained dollar demand from importers.
However, a higher opening in the equity markets and slightly weak dollar against the euro overseas amid continued foreign fund inflows limited the fall, dealers said.
Meanwhile, the BSE benchmark Sensex rose 32.17 points, or 0.17%, to 18,549.51.
The domestic unit had lost 9 paise to close at fresh two-and-a-half-month low of Rs. 55.21 per dollar in the previous session on continued dollar demand from importers.