Renewed dollar demand from importers and appreciation of the US currency led the Indian rupee fall by 9 paise to 63.46 against the dollar in early trade on Wednesday at the Interbank Foreign Exchange market.
Besides dollar's gains against other currencies, as investors await the outcome of a US Federal Reserve meeting, increased demand from importers for the American currency mainly put pressure on the rupee.
However, a higher opening in the domestic stock market, capped the losses, forex dealers said.
The local currency fell by 54 paise to close at 63.37 against the US currency in the previous session even as stock markets posted gains.
Meanwhile, the BSE benchmark Sensex rose by 67.56 points, or 0.34 per cent, to 19,871.59 in early trade on Wednesday.