The Rupee declined by 3 paise to 63.65 against the US Dollar in early trade on Friday, extending weakness for the second day, at the Interbank Foreign Exchange due to appreciation of the American currency overseas.

Besides, month-end demand for the American currency from importers and a lower opening in the domestic equity market, weighed on the Rupee, forex dealers said.

The Rupee had shed 2 paise to close at 63.62 against the US currency in the previous session due to Dollar demand from banks and importers.

Meanwhile, the benchmark BSE Sensex fell by 96.20 points or 0.34 per cent at 27,799.77 in early trade on Friday.