The rupee weakened by 7 paise to trade at a fresh 15-month low of 67.20 against the US dollar in early trade today due to appreciation of the American currency overseas amid sustained foreign capital outflows.
Dealers attributed the rupee's fall to increased demand for the US currency from importers.
However, a higher opening in the domestic equity market capped the losses.
Oil prices retreated from three-and-a-half-year highs as investors waited on an announcement by President Donald Trump on whether the US will reimpose sanctions on Iran.
The rupee had closed yesterday at a 15-month low of 67.13 against the US currency following a surging demand for the dollar as crude oil prices zoomed past USD 75 per barrel level.
Meanwhile, the benchmark Sensex rose by 180.73 points, or 0.51 per cent, to 35,388.87 in early trade.