The rupee slipped 16 paise to 54.93 against the dollar in early trade on the back of strengthening dollar and mild dollar demand from importers.
The Indian unit opened almost flat at 54.78 on steady domestic equity market and an easing euro. On Monday, it had closed at 54.77 per dollar.
Amid expectations of volatile trade, traders will eye the crucial vote on foreign direct investment in multi-brand retail in Parliament due on Wednesday, which will be a critical determinant for the rupee's direction in the medium term.
At 10.16 am, the currency was trading at 54.84 against the dollar.
