The rupee depreciated four paise to 73.44 against the US dollar in opening trade on Tuesday, tracking the rebound in the American currency and muted opening of domestic equities.
At the interbank forex market, the domestic unit opened at 73.42 against the US dollar and fell to 73.44 against the greenback, registering a decline of 4 paise over its previous close.
On Monday, the rupee had finished at 73.40 against the American currency.
"Weak Asian currencies could continue to weigh on sentiment. However, foreign portfolio investor (FPI) flows into the domestic equity markets could cap losses," Reliance Securities said in a research note.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.12 per cent to 90.57.
"US dollar index extended gains this Tuesday morning in Asian trade against major peers as the prospect of massive fiscal stimulus pushed US yields higher," the note added.
The euro, sterling and Japanese yen were flat against the US dollar this morning in Asian trade.