The rupee weakened 21 paise to 66.63 against the dollar in early trade at the Interbank Foreign Exchange market on increased demand for the US currency from importers and banks.

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A firm dollar against other currencies overseas as global growth worries swept equity markets and pushed lower oil prices, boosting demand for the US currency and a lower opening of the domestic equity market weighed on the rupee, dealers said.

On Wednesday, the rupee had closed marginally up by 2 paise to 66.42 on selling of the dollars by banks and exporters amid fall in equity market.

Meanwhile, the benchmark BSE Sensex fell 103.74 points, or 0.41%, to 25,125.96 in early trade.