The rupee on Monday depreciated by 24 paise to 53.92 against the dollar in early trade on the Interbank Foreign Exchange on fresh demand for the US currency.
Forex dealers said month-end dollar demand from oil importers and dollar's gain against other currencies overseas, also put pressure on the rupee.
However, a higher opening in the equity market, capped the rupee's losses, they said.
The rupee had ended almost unchanged at 53.68 against the dollar in the previous session on Thursday.
The forex and money markets were closed on Friday on account of 'Id-E-Milad'.
Meanwhile, the BSE benchmark Sensex rose by 41.10 points, or 0.20%, to 20,144.63 in early trade on Monday.