The rupee slipped 5 paise to 89.73 against the US dollar in early trade on Tuesday, pressured by foreign institutional investor (FII) outflows and a weak opening in domestic equity markets.
Forex traders said that losses in the local currency were capped by a weaker dollar index and a decline in global crude oil prices, which offered some support.
In the interbank foreign exchange market, the rupee opened at 89.67 against the dollar but gradually weakened to 89.73, compared with its previous close.