The rupee depreciated 8 paise to 82.12 against the US dollar in early trade on Wednesday tracking the strength of the American currency in the overseas markets.
Traders said domestic equity benchmarks scaling all-time high levels and sustained foreign fund inflows boosted investor sentiments and restricted the depreciating bias.
At the interbank foreign exchange, the domestic unit opened at 82.08, then touched 82.12, registering a decline of 8 paise over its last close.
On Tuesday, the rupee had settled at 82.04 against the dollar.
Also read: Weekly Rupee View: Rupee at a crucial juncture
The rupee opened a bit lower as the Reserve Bank of India (RBI) continues its US dollar buying spree below 82, Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.07 per cent to 100.01 on good retail sales data from the US.
Brent crude futures, the global oil benchmark, fell marginally by 0.31 per cent to $79.38 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 235.46 points or 0.35 per cent higher at 67,030.60. The broader NSE Nifty advanced 56.85 points or 0.29 per cent to 19,806.10.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth ₹2,115.84 crore, according to exchange data.