The rupee depreciated 6 paise to 82.01 against the US dollar in early trade on Wednesday, weighed down by foreign fund outflows and a negative trend in domestic equities.
At the interbank foreign exchange, the domestic unit opened weak at 82.00 against the dollar, then fell to 82.01, registering a decline of 6 paise over its last close.
On Tuesday, the rupee settled at 81.95 against the dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 101.82.
"The undercurrents of the rising chaos on the global front amid geo-political concerns and a sudden change in the risk on and off mode are not healthy for the currency.
"However, in the near-term perspective, the pair has been squeezed between 81.80-82.20, and a push above 82.20 is required to take the pair towards 82.50-82.80 levels," CR Forex Advisors MD Amit Pabari said.
The markets on Wednesday trade flat with Sensex at 60,128.43, down by 2.28 points and Nifty dipped by 12.30 points at 17,756.95. TCS, Bharti Airtel, L&T, Tech Mahindra, Infosys and Tech Mahindra were the top gainers whereas Tata Motors, NTPC, Baja Finserv, HDFC and ITC were the top losers.
Oil prices on Wednesday rose after a US trade group reported higher crude oil stocks prior to government data release. Brent crude went up 16 cents to $80.93 per barrel.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 407.35 crore, according to exchange data.
With input from PTI
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