Dealers said apart from dollar gains against the euro overseas, increased demand for the dollar from importers, particularly oil companies, weighed on the rupee sentiment.
The rupee had ended just one paise higher at 57.02 against the American currency yesterday over its previous closing.
Meanwhile, the BSE benchmark Sensex regained psychological 17,000- level by rising 122.69 points, or 0.72 per cent, to 17,029.27 points in early trade today.