The rupee eased by 3 paise to Rs 50.26 against the dollar in early trade on Tuesday on the Interbank Foreign Exchange market, following increased demand for the American currency from importers.
Traders said apart from increased demand for the dollar from importers, dollar gains against other Asian currencies overseas mainly weighed on the rupee sentiment.
Higher opening in the equity market, however, capped the rupee's losses, they added.
Meanwhile, the BSE benchmark Sensex rose by 73.11 points, or 0.42%, to 17,346.48 in early trade.
The rupee had ended lower by 5 paise at 50.23/24 against the American currency on Monday on fresh dollar demand for the dollar from importers.