Mumbai: The rupee opened on a weak note and declined by 22 paise to 69.73 against the US dollar in early trade Tuesday, owing to increased demand for the greenback from importers and banks.
Forex traders said the strengthening of the greenback vis-a-vis other currencies overseas and weak opening in domestic equities added pressure to the local unit.
However, foreign fund inflows and easing crude prices restricted the fall in the domestic currency.
The rupee opened weak at 69.68 at the interbank forex market and then fell further to 69.73, down 22 paise over its last close.
The rupee had settled at 69.51 against the US dollar Monday.
Meanwhile, brent crude futures, the global oil benchmark, eased 0.11 percent to USD 70.03 per barrel.
Foreign institutional investors (FIIs) infused Rs 1,215.36 crore on a net basis Monday, provisional data showed.
Domestic bourses opened on a negative note Tuesday with benchmark indices Sensex trading 33.21 points down at 39,650.08 and Nifty down 23.45 points at 11,901.30.