The rupee depreciated by 20 paise to 46.73 against the US dollar in opening trade on Monday, largely on fears of fresh capital outflows by foreign funds amid a bearish trend in other Asian markets.
However, dollar’s losses against some currencies, limited the fall in the local unit.
At the Interbank Foreign Exchange (Forex) market, the domestic unit traded 20 paise down at 46.73 a dollar. The rupee had ended 11 paise higher at 46.53/54 against the dollar in the previous session on Friday.
Forex dealers said the expectations of fresh capital outflows by foreign funds following a weak Asian market, which was down up to 1.20 per cent in the morning trade today, mainly weighed on the rupee.