The Indian rupee depreciated by 16 paise against the US dollar in early trade at the Interbank Foreign Exchange on Wednesday on capital outflows by foreign funds from equities.
The domestic unit fell by 16 paise to trade at 46.64 a dollar.
The rupee had closed lower by 28 paise at 46.48/49 a dollar in the previous session.
Forex dealers said weak opening on the stock markets following capital outflows by foreign funds in tandem with tumble on global markets, mainly weighed on the rupee sentiment.
Meanwhile, the Bombay Stock Exchange index, Sensex, fell by 160.31 points, or 0.91 per cent, to 17,373.78 points in the opening trade on Wednesday.