The Indian rupee fell by 26 paise to 47.87 against the greenback in morning trade today in tandem with weak equity market and firm $ overseas.
In fairly active trade at the Interbank Foreign Exchange (forex) market, the domestic currency resumed lower at $47.77 against its last weekend's close of 47.61/62 and dropped to quoted at $47.87 in late morning deals.
The $ surged ahead against the basket of currencies in early trade in Asian markets.
Forex dealers said continued weakness in equity markets raised fears of capital outflows by Foreign Institutional Investors, which have been pumping funds in Indian equity since May.
Meanwhile, global oil prices eased below $72 a barrel in Asian trade this morning.