The rupee weakened by 12 paise to 68.74 against the US dollar today, hurt by fresh demand for the American currency from importers.
Traders said besides fresh demand of the US currency from importers, dollar's firmness against some currencies overseas weighed on the domestic unit. However, a higher opening of the stock market capped the rupee's fall.
The local currency had depreciated 17 paise to settle at 68.62 yesterday against the greenback.
The benchmark Sensex rose by 142.14 points, or 0.39 per cent, to 36,515.58 in early session today.