The rupee depreciated 8 paise to 75.74 against the US dollar in opening trade on Wednesday as market participants were concerned about rising tensions between Washington and Beijing in the wake of the coronavirus pandemic.
Forex traders said rupee was trading in a narrow range as rising optimism about a potential coronavirus vaccine and a revival in business activity was offset by the escalation of US-China tension.
Moreover, strengthening of the American currency overseas and muted opening of domestic equities also weighed on the local unit.
The rupee opened weak at 75.72 at the interbank forex market and then fell further to 75.74, down 8 paise over its last close.
It had settled at 75.66 against the US dollar on Tuesday.
The 30-share benchmark index, Sensex was quoting 10.07 points higher at 30,619.37 and broader Nifty rose 28.55 points to 9,057.60.
Foreign institutional investors were net buyers in the capital market, as they bought equity shares worth Rs 4,716.13 crore on Tuesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 0.22 per cent to USD 36.09 per barrel.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.25 per cent to 99.15.