The Indian rupee declined by 13 paise to 60.74 against the US dollar in early trade today due to appreciation of the American unit against other currencies overseas.
Besides, fresh demand for the US dollar from importers also put pressure on the rupee.
The local unit had gained six paise to close at almost three-week high of 60.61 against the dollar yesterday on constant selling of the American currency by exporters and some banks amid increased inflows.
Dealers attributed the fall in the rupee today to dollar's gains against other currencies overseas but a higher opening in the domestic equity market capped the fall.
Meanwhile, the benchmark BSE Sensex rose 56.30 points, or 0.21 per cent, to 26,370.59 in early trade today.