The Indian rupee weakened 16 paise against the US dollar in early trade on capital outflow by foreign funds in anticipation that the domestic markets may open down, in tandem with other Asian bourses.
At the Interbank Foreign Exchange (Forex) market, the local unit fell 16 paise to 47.44 a dollar.
On Monday, the domestic currency had ended 18 paise lower at 47.28/30 against the greenback.
Forex dealers said the Bombay Stock Exchange benchmark Sensex is likely to open on a weak note in line with other Asian markets, which are down up to 0.5 per cent, leading to capital outflow by foreign funds.
Month-end dollar demand also put pressure on the rupee, they added.
The 30-share barometer had closed with a moderate gain of 26 points at 13,913.22 points in a choppy trade on Monday.
