The rupee depreciated by five paisa in early trade on Wednesday to quote at 67.97 against the US dollar on the first trading day of 2017 due to fresh buying of the American currency by importers at the Interbank Foreign Exchange.
Dealers said increased demand for the American unit from importers and a lower opening in the domestic market weighed on the rupee. Besides, dollar’s gain against major world currencies and a weak trend at the domestic equity market also left its mark on the rupee.
The rupee had closed 18 paisa higher at 67.92 against the greenback in the previous session on 30 December 2016.
Meanwhile, the benchmark BSE Sensex fell 132.37 points, or 0.50 per cent, to 26,494.09 in early trade.