The rupee weakened by 25 paise to 85.86 against the US dollar in early trade on Wednesday, pressured by foreign fund outflows.
However, forex traders noted that the decline was cushioned by positive trends in domestic equity markets, easing global crude oil prices, and a softer US dollar.
At the interbank foreign exchange, the rupee opened weaker at 85.69 and later fell to 85.86 against the greenback during early trade.