The Indian rupee depreciated by 7 paise to Rs 49.42 per dollar in early trade today, weighed down by dollar gains overseas.
At the Interbank Foreign Exchange, the domestic unit ended flat at Rs 49.32/33 per dollar in the previous session.
Forex dealers said weakness in Asian currencies against the US dollar and demand for the greenback from importers mainly put pressure on the rupee sentiment, but a higher opening in the stock market capped the losses.
Meanwhile, the BSE Sensex Index rose by 162.10 points, or 0.98%, to 16,698.57 in opening trade today.