Rupee falls 14 paise to 82.35 against U.S. dollar in early trade

Risk aversion sentiment among investors and weak Asian and emerging market currencies weighed on the rupee

The rupee depreciated 14 paise to 82.35 against the U.S. dollar in the morning trade on Wednesday amid the strengthening of the American currency and sustained foreign fund outflows.

Moreover, risk aversion sentiment among investors and weak Asian and emerging market currencies weighed on the local unit.

At the interbank foreign exchange, the domestic unit opened at 82.32 against the dollar, then lost further ground to 82.35, registering a loss of 14 paise over its previous close.

In a highly volatile session, the local unit also touched 82.28 against the American currency in initial deals.

On Tuesday, the rupee rebounded from its all-time low to close 19 paise higher at 82.21 against the US dollar.

"Most Asian and emerging market peers were weaker this Wednesday and will weigh on sentiments," Sriram Iyer, Senior Research Analyst at Reliance Securities said, adding that investors will remain cautious ahead of the release of key domestic macro data.

India's inflation, IIP and manufacturing output are due today, while the more important FOMC minutes are scheduled for late evening.