The rupee depreciated 13 paise to 81.82 against the US dollar in early trade on Wednesday, as a strengthening American currency and firm crude oil prices weighed on investor sentiments.
At the interbank foreign exchange, the domestic unit opened weak at 81.80 against the dollar, then fell to 81.82, registering a decline of 13 paise over its last close.
In the previous session on Tuesday, the rupee settled at 81.69 against the dollar.
The dollar index, which measures the strength of the dollar against a basket of six different currencies, increased 0.49 percent to 102.88.
The international oil benchmark, Brent crude futures, increased 0.65% to USD 86.48 a barrel.
In anticipation of the Bank of Japan’s policy pronouncement, traders said market participants are still being cautious.
The 30-share BSE Sensex was up 157.99 points, or 0.26 percent, to 60,813.71 on the domestic equity market. The NSE Nifty index as a whole increased by 44.60 points, or 0.25 percent, to 18,097.90.
According to exchange data, foreign institutional investors (FIIs) changed from being net sellers to buyers on Tuesday by purchasing shares worth Rs 211.06 crore.
With inputs from Agencies.