Rupee depreciates 6 paise against dollar in early trade
Sustained capital outflows also weighed on the domestic unit but dollar's weakness against some currencies overseas limited the rupee's fall, foreign exchange dealers said.
The rupee depreciated 6 paise to 67.96 against the US dollar in early trade on Wednesday at the Interbank Foreign Exchange market due to increased demand for the American unit from importers and banks amid a lower opening in the domestic equity market.
Moreover, sustained capital outflows also weighed on the domestic unit but dollar's weakness against some currencies overseas limited the rupee's fall, foreign exchange dealers said.
On Tuesday, the rupee snapped its two-day losing streak against the US currency by recovering 4 paise to 67.90 on fresh selling of dollar by banks and exporters despite sustained fall in equities.
Meanwhile, the benchmark BSE Sensex fell by 159.77 points or 0.66% to 23,861.21 in early trade.