Extending its Monday's losses, the rupee lost 27 paise to Rs 61.79 against the US dollar in early trade on Tuesday on the Interbank Foreign Exchange due to appreciation of the Greenback against other overseas currencies.
Dealers attributed the fall in rupee to gains made by US dollar against the euro and other overseas currencies ahead of US jobs data and a lower opening in the domestic equity market.
Increased demand for the dollar from importers and banks also put pressure on the local currency.
The rupee weakened by 25 paise to close at Rs 61.52 against the dollar in Monday's trade on persistent demand from importers and banks as the US currency strengthened overseas.
Meanwhile, the BSE benchmark Sensex fell 31.74 points, or 0.15 per cent, to 20,862.15 in early trade on Tuesday.