The Indian rupee eased by 3 paise to Rs 48.98 per dollar in early trade today on mild demand for the American currency from importers.
However, a firm opening in the equity market and euro gains overseas against the US dollar limited the rupee losses.
At the Interbank Foreign Exchange, the domestic unit appreciated by 37 paise to close at a one-week high of Rs 48.95/96 against the US currency in yesterday's trade, in line with a sharp rise in local equities.
Forex dealers said demand for the greenback from importers mainly put pressure on the rupee, but a higher opening in the stock market restricted the losses.
Meanwhile, the BSE Sensex Index rose by 125.68 points, or 0.74%, to 17,084.07 in opening trade today