The rupee depreciated by 12 paise against the US currency in early trade today on fresh capital outflows by foreign funds and the dollar's gains overseas.
At the Interbank Foreign Exchange (Forex) market, the rupee fell by 12 paise to 46.22 a dollar. The rupee had closed higher by 11 paise at 46.10/11 a dollar in the previous session.
Forex dealers said besides dollar gaining overseas, weak trend on the stock markets also weighed on the rupee sentiment.
Meanwhile, the Bombay Stock Exchange index Sensex fell by 72.54 points, or 0.43 per cent to 16,356.37 points in the early trade today.