The rupee declined by 11 paise to 60.25 against the US dollar in early trade today due to appreciation of the American unit against other currencies overseas.
Besides, fresh demand for the US dollar from importers also put pressure on the rupee.
The local unit had lost 3 paise lower at 60.14 against the dollar yesterday due to late demand for the US currency from importers.
Dealers attributed the fall in the rupee today to dollar's gains against other currencies overseas but a higher opening in the domestic equity market capped the fall.
Meanwhile, the benchmark BSE Sensex rose by 66.86 points, or 0.29 per cent, to 22,769.20 in early trade today.