Indian rupee has fallen about 7 paise to 54.83 against the US dollar after it failed to capitalize on the early gains in the international foreign exchange market.

The Indian currency has higher at 54.69 against the dollar after closing at 54.76 to the dollar on Friday. The fall was recorded following an uncertain level of demand and supply for the dollar even as the American currency largely remained flat in the international markets.

The rupee had fallen 39 paise to close at 54.75 in the previous session on Friday's trade at the Interbank Foreign Exchange. Foreign exchange dealers said that the uncertainty put pressure on the rupee resulted in early gains and then a fall in the value of the currency against the dollar.

The inflation data released in the country suggests that it will touch a 11 month high in October due to more expensive fuel and food items in the markets. Inflation could add pressure on the Indian rupee because RBI's decision on interest rates depends upon the inflation level in the country.

Meanwhile, the BSE benchmark Sensex rose 43.68 points to 18,727.36 in early trade today.