The price rise of essential food items like vegetables, fruits and cereals, pushed up inflation to five-month high of 6.01% in May.
Dealers said besides dollar's gains against other currencies overseas, continued demand for the US currency from oil importers, to meet their requirements after global crude prices soared to nine-month highs on tension in Iraq, mainly weighed on the domestic currency.
A lower opening in the domestic equity markets also put pressure on the rupee, they said.
The rupee had slipped below 60-mark and closed sharply down by 39 paise at a six-week low of 60.16 against the dollar in yesterday's trade.
Meanwhile, the benchmark BSE Sensex fell by 51.25 points, or 0.20%, to 25,139.23 in early trade today.