Weak opening in the stock market put pressure on the rupee that fell by 5 paise to Rs 54.34 against the American currency on the Interbank Foreign Exchange in early trade on Tuesday.
Dealers said besides dollar's fell against the yen and euro in Asian trade on Tuesday after weaker-than-expected US manufacturing data sparked renewed fears about the state of the world's biggest economy.
The rupee had ended higher by 7 paise at 54.29 against the dollar in the previous session.
Meanwhile, the BSE benchmark Sensex declined by 33.36 points, or 0.17 per cent, at 18,831 in early trade.
With PTI inputs