Forex traders said investor sentiments got a boost as crude oil prices retreated from their elevated levels, while the strength of the American currency in the overseas market weighed on the local unit and restricted the up move.
At the interbank foreign exchange, the rupee opened at 83.33 against the dollar and touched an early low of 83.34 in initial trade, registering a fall of 5 paise over its previous close. It was later trading at 83.31 against the American currency.
Forex traders said the Indian rupee depreciated as foreign fund outflows weighed on the rupee. However, positive domestic markets cushioned the downside.
The dollar index hovered little changed near the 104 level, after retreating nearly 0.3% on Tuesday following a rally that lifted the index to its highest level in nearly 3 months.