The rupee weakened 7 paise to 63.65 against the US dollar in early trade on Thursday at the Interbank Foreign Exchange following gains in the American currency against major currencies globally.
Dealers said rupee weakened due to increased demand for the dollar from importers. A higher opening in the domestic equity market limited the rupee's fall, they added.
The rupee ended marginally lower by three paise at 63.58 against the US dollar on Wednesday on mild demand for the American currency from banks and importers. Meanwhile, the benchmark Sensex rose further by 73.40 points, or 0.25%, to 28,578.33 in early trade.