Rupee weakened by 6 paise to 66.58 against the dollar in early trade at the Interbank Foreign Exchange market largely due to month-end demand for the US currency from importers.
The month-end demand from banks and importers and a lower opening of the domestic equity market mainly weighed on the rupee, forex dealers said.
A weakness in the US dollar against some currencies in the global market hit by weaker-than-expected durable goods orders data, however, limited the fall, they added.
On Tuesday, the rupee had gained 10 paise to close at 66.52 against the dollar on fag-end selling of the American unit by banks and exporters and a strong bounce-back by domestic equities.
Meanwhile, the benchmark BSE Sensex was trading lower by 122.06 points, or 0.46 per cent, at 25,885.24 in early deals.