Continuing its fall for the second day, the rupee weakened by another 7 paise to trade at fresh one-week low of 68.77 against the US dollar in early session today due to increased demand for the American currency from importers amid sustained foreign capital outflows.
The dollar's gains against other currencies overseas on worries over escalating trade tensions between the US and China, also impacted the rupee sentiment, a currency dealer said.
They said, a higher opening of the domestic equity market, capped the rupee's losses.
Yesterday, the rupee had dropped by 27 paise to close at a one-week low of 68.70 against the US dollar.
Meanwhile, the benchmark Sensex recovered 223.64 points, or 0.60 per cent, to 37,388.80 in early trade.