Snapping its four-day rising streak, the rupee declined by 23 paise to Rs 54.61 against the dollar in early trade today on the Interbank Foreign Exchange due to the American currency gaining against the euro overseas.
However, a higher opening in the stock market capped the losses, traders said.
The rupee had shot up by a massive 105 paise to close at a nearly six-week high of 54.38 against the US currency yesterday on increased capital inflows and offloading of dollars by banks and exporters.
Meanwhile, the BSE benchmark Sensex rose by 92.15 points, or 0.53%, at 17,517.86.
