Mumbai: The rupee was trading lower by 7paise at 68.25 against the American currency in early trade today after the dollar gained strength overseas.

Forex dealers said increased demand for the US currency from importers and dollar's gains against other currencies overseas put pressure on the rupee.

They said, however, a higher opening in the domestic equity market capped the rupee losses. Yesterday, the rupee had ended 3 paise higher at 68.18 against the American currency in a range bound trade amid weak dollar overseas.

Meanwhile, the benchmark BSE Sensex recaptured the 27,000-mark by surging 151.01 points, or 0.56 per cent, to 27,050.57 in the opening trade today.