The Indian rupee today lost about eight paise against dollar in the morning trade on the absence of any worthwhile activity amid a fresh fall in equity markets.

At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed weak at 42.45/47 a dollar against its last close of 42.40/41 a dollar and later fell to 42.5275/5375 a dollar in late morning trade.

Dealers said weakness in equity markets raising fears of further capital outflows weighed on the rupee sentiment.

Indian benchmark Sensex dropped further by 252 points and dipped below 16K mark in the early trade.

Rupee had recovered 38 paise in the last two sessions after the government relaxed norms for the foreign currency loans through the external commercial borrowing (ECB).

Rupee is expected to come under pressure later in the day if exporters remained sidelined, traders said.