The Indian rupee on Friday fell by 8 paise to 48.23 against the US currency in early trade after a three-session rising streak on expectations of fresh capital outflows as the stock markets may open lower in line with other weak Asian markets.
The dollar's rise against other currencies also put pressure on the Indian rupee.
At the Interbank Foreign Exchange (Forex) market, the domestic unit traded 8 paise down at 48.23 a dollar. On Thursday, the rupee had ended 8 paise higher at 48.15/16 against the US currency.
Dealers said the rupee turned weak in anticipation of fresh capital outflows as the stock markets may commence lower taking cues from weak Asian bourses, which are down up to 1.20% in morning trade.
Besides, some dollar demand from importers also led to the downward movement in the rupee.