The rupee opened lower by 28 paise to a fresh 16-month low of 67.79 against the dollar in early trade on Tuesday.
The dollar regained from its lowest level in the week and firmed up against major global currencies today. Hopes for easing global trade tensions pushed US bond yields higher, Forex dealers said, adding, early fall in stock markets and demand for the US currency from importers also weighed on the local unit.
On Monday, the rupee fell by 18 paise to end at a fresh 16-month low of 67.51 against the US currency on heavy
dollar purchases and sustained fund outflows from equities.
The benchmark BSE Sensex fell by 57.88 points, or 0.28 per cent, to 35,498.83 in early trade on Tuesday.