The rupee fell by 21 paise to 61.65 against the dollar in early trade today at the Interbank Foreign Exchange market, mainly due to demand from importers for the US currency, amid a lower opening in the domestic market.
Forex dealers said besides fresh demand for the American currency from importers, a lower opening in the equity market mainly put pressure on the local currency.
They said, however, dollar's weakness against other currencies overseas on growing fears about the US government shutdown with a deadline approaching to raise the country's borrowing limit, limited the fall.
The rupee had gained 29 paise to close at seven-week high of 61.44 against the dollar on Friday on expectations that the US government shutdown would delay tapering of the Fed's stimulus programme.
Meanwhile, the BSE benchmark Sensex fell by 202.86 points, or 1.02 per cent, to 19,713.09 in early trade today.
