The rupee depreciated 4 paise to 83.12 against the US dollar in early trade on Wednesday, tracking a negative trend in domestic equities.
Forex traders said the strength of the American currency and elevated crude oil prices in the international market dented investors' sentiments.
At the interbank foreign exchange, the rupee opened at 83.11 against the dollar and touched an early low of 83.12 and a high of 83.09 in initial trade.
On Tuesday, the rupee depreciated 8 paise to close at 83.08 against the US dollar.
"The Indian rupee is expected to fall to 83.08 as all risk assets fell against the mighty dollar, with gold also falling below $2,000 per ounce to $1,991.51. Flows should continue in the currency thus keeping it range-bound after the lower opening," said Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 104.81, lower 0.14 per cent.
Brent crude futures, the global oil benchmark, fell 0.16 per cent to $82.64 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 617.81 points or 0.86 per cent lower at 70,937.38 points. The broader NSE Nifty was down 180.50 points or 0.83 per cent to 21,562.75 points.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth Rs 376.32 crore, according to exchange data.