The Indian rupee weakened 16 paise against the $ in early trade today on capital outflow by foreign funds in anticipation that the domestic markets may open down, in tandem with other Asian bourses.
At the Interbank Foreign Exchange (Forex) market, the local unit fell 16 paise to 47.44 a $.
Yesterday, the domestic currency had ended 18 paise lower at 47.28/30 against the greenback.
Forex dealers said the Bombay Stock Exchange benchmark Sensex is likely to open on a weak note in line with other Asian markets, which are down up to 0.5%, leading to capital outflow by foreign funds.
Month-end dollar demand also put pressure on the rupee, they added.
