The rupee depreciated 4 paise to 86.59 against the US dollar in early trade on Thursday, after the US FED kept rates on hold and was hawkish in its outlook.
Forex traders said the rupee continued to face pressure due to sustained foreign fund outflows and broad strength of the American currency in the overseas market.
At the interbank foreign exchange, the rupee opened at 86.58 then fell further to 86.59 against the American currency, registering a decline of 4 paise over its previous close.