MUMBAI: The rupee depreciated by 17 paise to 71.95 against the US dollar in early trade on Thursday.
At the interbank foreign exchange, the rupee opened weak at 71.96 and fell further to 72.05 against the US dollar.
The domestic currency, however, pared some losses and was trading at 71.95.
On Wednesday, the rupee fell 29 paise to close at 71.77 against the US dollar.
The BSE Sensex was trading 215.51 points, or 0.58 per cent, lower at 37,236.33, while the broader Nifty fell 58.90 points, or 0.53 per cent, to 10,987.20 in early trade.
As per provisional data, Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 935.27 crore on Wednesday.
Brent crude futures, the global oil benchmark, declined 0.63 per cent to USD 60.11 per barrel.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 98.19.
The 10-year government bond yield was up at 6.57 per cent in morning trade.