Forex dealers said besides stronger dollar in the overseas markets on renewed eurozone worries, a weak opening in the stock market also put pressure on the domestic unit.
The rupee had ended higher by 42 paise at 53.42 against the dollar in the previous session after a series of measures by the Reserve Bank.
Meanwhile, the BSE benchmark Sensex declined by 73.99 points, or 0.45 per cent, at 16,346.06 in early trade.