The rupee depreciated by 10 paise to 62.26 against the dollar in early trade on Wednesday at 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.
Forex dealers attributed the rupee's fall to the dollar's gains against other currencies overseas but a higher opening of the domestic equity market, capped the losses.
The rupee had gained three paise to close at 62.16 against the dollar on Monday following continued selling of the US currency by banks and exporters.
Forex market remained closed on Tuesday on account of Mahashivratri.
Meanwhile, the benchmark BSE Sensex rose by 105.68 points, or 0.36%, at 29,241.56 in early trade on Wednesady.