The rupee fell by 25 paise to Rs 50.16 against the American currency in early trade today on the Interbank Foreign Exchange, weighed down by dollar's gains against other currencies overseas.
Forex dealers said besides dollar's gains against other Asian currencies, a weak opening in the stock market and increased demand for the American currency from importers also put pressure on the local unit.
The rupee had ended marginally higher by 2 paise at 49.91/92 against the dollar in the previous session.
Meanwhile, the BSE benchmark Sensex declined by 103.08 points, or 0.58%, at 17,816.22 in early trade.