The rupee was trading lower by 18 paise at 66.90 against the US dollar in early trade today on higher demand for the American currency from importers and banks amid a lower opening in the domestic equity market.

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Dealers attributed the rupee's fall to increased demand for the US currency, but dollar's weakness against some currencies overseas restricted the losses.

The rupee had ended higher by 12 paise at 66.72 against the US currency in yesterday's trade on dollar selling by banks and exporters on the back of persistent foreign capital inflows.

Meanwhile, the benchmark BSE Sensex fell 73.70 points or 0.27 per cent to 27,701.18 in early deals.