The Indian rupee depreciated by 15 paise against the US currency in early trade on Friday on increased dollar demand by banks and concerns over fund outflows from the weak domestic equity markets in tandem with falling Asian bourses.
At the Interbank Foreign Exchange (Forex) market, the domestic currency was quoted at 49.12 against the dollar, a fall of 15 paise over the previous close of 48.97/98 a dollar.
Dealers said increased demand from state-run banks for the greenback on behalf of their clients put pressure on the rupee.
They added that fears of capital outflows from the domestic stock markets following the fall in Asian equity markets in early trade put pressure on the rupee.
Meanwhile, Japan's Nikkei fell by 3.35 per cent, while Hong Kong's Hang Seng moved down by 1.55 per cent in early trade.