The rupee today weakened by 18 paise to trade at Rs 49.28 against the US currency as the dollar strengthened in the overseas markets.
However, a higher opening in the domestic equity market capped the rupee losses.
Dealers attributed the rupee's fall to dollar gains against the euro in overseas markets.
The rupee had strengthened by 4 paise to close at Rs 49.10/11 against the US dollar in the previous session on Friday. The forex market was closed yesterday on account of 'Bakr-id'.
Meanwhile, the BSE benchmark Sensex was up by 69.62 points, or 0.39%, at 17,632.23 in early trade.
