The Indian rupee on Friday depreciated by 32 paise against the US currency in opening trade on capital outflows by foreign funds, melting Asian equity markets and dollar demand from importers.
At the Interbank Foreign Exchange (Forex) market, the domestic currency traded at 48.65 against the greenback, a fall of 32 paise over the previous close of 48.33/34, after reaching one-month high on Thursday.
Dealers said that the rupee lost on capital outflows by foreign funds amid dollar demand from importers and bearish trend in Asian equity markets and fears of weak opening on the domestic bourses.
Asian markets on Friday opened very weak with Hong Kong's Hang Seng going down 6.20 per cent, while Japan's Nikkei falling 4.12 per cent in early trade.
The rupee, shot up by 65 paise in the last trading session on Thursday against the dollar.