The rupee falls to 54.82/83 versus its previous close of 54.49/50. The unit fell to 54.90 in opening deals.
Traders say short-covering in the dollar seen on the back of losses in regional equity markets, but exporters are expected to step up sales at higher levels, holding the pair in a 54.65 to 54.95 range.
Asian shares fall tracking overnight weakness in global equities after senior Federal Reserve officials express concerns about continuing to expand stimulative bond buying.
Traders will also watch domestic sharemarket moves for cues on foreign fund flows. Shares trading down 0.1 percent in early trade.
Traders say dollar demand from oil firms may also boost the dollar later in the session.