The rupee depreciated 4 paise to 86.61 against the US dollar in early trade on Wednesday, due to sustained foreign fund outflows, unabated dollar demand from oil importers and weak risk appetite.
Forex traders said the rupee continued to face pressure as investors are awaiting cues from the US FED meeting outcome. Besides, global risk sentiments were dampened amid tariff threats by the US President Donald Trump, they said.
At the interbank foreign exchange, the rupee opened at 86.58 then fell further to 86.61 against the American currency, registering a decline of 4 paise over its previous close.