The rupee on Monday depreciated by 4 paise against the US currency in early trade on continued outflows by foreign funds from equities amid increased dollar demand from importers.
At the Interbank Foreign Exchange (Forex) market, the Indian rupee fell by 4 paise to 46.18 a dollar.
Dealers said weakness in Asian currencies against the dollar and subdued trend on the stock markets continued to put pressure on the Indian rupee.
Besides, dollar buying by importers also weighed on the rupee, they added.
Meanwhile, the Bombay Stock Exchange index Sensex was down about 116 points in opening trade on Monday.