The rupee depreciated by 28 paise to trade at 68.26 against the U.S. dollar in early trade on Wednesday at the Interbank Foreign Exchange, due to increased demand for the American unit from importers and banks amid a lower opening in the domestic equity market.
Sustained capital outflows also weighed on the domestic unit but dollar’s weakness against some currencies overseas limited the rupee’s fall, dealers said.
The rupee had lost 14 paise to close at 67.98 per dollar in Tuesday’s trade on sustained demand for the U.S. currency from banks and importers amid a massive fall in equities as the Reserve Bank kept its key policy rate unchanged.
Meanwhile, the Sensex tumbled by 275.35 points or 1.12 per cent to 24,263.65.
