Indian rupee on Wednesday depreciated by 9 paise in the early trade, tracking gains in the US dollar against major currencies. At the Interbank Foreign Exchange (Forex) market, the domestic unit was trading 9 paise lower at Rs 44.40 a dollar in early trade.
The rupee had closed 6 paise higher at Rs 44.31/32 against the greenback in the previous session on late rebound in stocks and sustained heavy capital inflows.
Forex dealers said dollar's gain against other major currencies and weak opening on the stock markets weighed down the rupee, but capital inflows by Funds towards Initial Public Offer of Power Grid Corporation of India capped its losses.
Meanwhile, the BSE Sensex fell by 42.85 points, or 0.20% to 20,889.03 in the opening trade on Wednesday.