Mumbai: The rupee depreciated by 17 paise to 65.11 against the US dollar in early trade at the interbank forex market on Friday on foreign fund outflows.
The rupee opened lower at 65.08 per dollar against previous close of 64.94 per dollar. It dropped further to hit a low of 65.11 per dollar in morning session.
A currency trader said increased demand for the US currency from importers and banks and losses in domestic equity market weighed on the rupee.
However, the dollar trading weak against some currencies overseas on likely delay in the implementation of a major corporate tax cut limited the rupee losses, traders said.
On Thursday, the rupee had firmed up by a modest two paise to end at 64.94 against the US currency in a quiet trade on mild dollar selling by banks and exporters in the face of subdued overseas sentiment.
The benchmark BSE Sensex was quoting 56.58 points, or 0.17 per cent, down at 33,194.35 in early trade.