The Indian rupee on Thursday depreciated by 8 paise to 46.28 against the US currency in early trade on expectations of capital outflows by foreign funds.

At the Interbank Foreign Exchange (Forex) market, the domestic unit traded 8 paise down at 46.28 a dollar. The rupee ended 17 paise higher at 46.20/21 against the US currency in the previous session.

Forex dealers said expectations of more capital outflows by foreign funds as stock market may open lower in tandem with weak Asian equity markets and demand for the US dollar from importers mainly put pressure on the Indian rupee.

They said, dollar’s losses against other currencies contained the fall.

More In: Markets | Business