Increased month-end demand for the dollar from banks and importers also put pressure on the rupee.
Dealers attributed the rupee's fall to dollar gains against the euro overseas and a lower opening in the stock market.
The rupee had lost 23 paise to close at one-week low of 53.91 a dollar in yesterday's trade on heavy demand from importers for the American currency.
Meanwhile, the BSE benchmark Sensex was down by 30.86 points, or 0.15 per cent, at 20,072.49 in early trade today.