Forex dealers said firm demand from importers for the dollar, mainly put pressure on the domestic unit.
The rupee had ended higher by 5 paise at 54.42 against the dollar in the previous session after touching 54.91, its fresh all-time low as fund outflows continued amid euro-zone worries.
Meanwhile, the BSE benchmark Sensex rose by 76.53 points, or 0.47 per cent, at 16,229.28 in early trade.