Mumbai : The rupee depreciated by 12 paise to 63.53 against the US dollar in early trade today at the Interbank Foreign Exchange due to increased demand for the American currency from importers.
Forex dealers said dollar's strength against other currencies overseas, buoyed by Federal Reserve Chair Janet Yellen's reiteration that an interest rate hike remained likely this year as the economy improves, also put pressure on the rupee.
However, a higher opening in the domestic equity market capped the rupee's losses, they said.
The rupee had lost two paise to close at 63.41 against the dollar yesterday on fag-end demand for the American currency from banks and importers.
Meanwhile, the benchmark BSE Sensex rose by 123.17 points, or 0.44 per cent, to trade at 28,321.46 in early trade today.