The Indian rupee slipped 2 paise to 86.40 against the US dollar in early trade on Wednesday, weighed down by foreign fund outflows and rising crude oil prices.
Forex traders noted that while the strengthening of the US dollar—following the announcement of a trade deal with Japan—put pressure on the rupee, positive cues from domestic equity markets helped limit further losses.
At the interbank foreign exchange, the rupee opened weaker at 86.46 and later recovered slightly to trade at 86.40, down 2 paise from its previous close.