The rupee edged lower by 3 paise to 66.87 against the dollar in early trade today on fresh buying of the American currency by importers ahead of RBI policy.
Forex dealers said strength in the dollar against some other currencies overseas and a weak trend in the domestic equity market in early trade also weighed on the rupee.
Yesterday, the local currency ended seven paise lower at 66.84 on fresh dollar demand form banks and importers on the back of strong dollar in overseas markets.
Meanwhile, the benchmark BSE Sensex was trading 55.20 points, or 0.20 per cent, down at 28,127.37 in early trade.