The Indian rupee on Wednesday depreciated by 7 paise to 46.78 against the US dollar in opening trade largely in line with other weak Asian currencies.
At the Interbank Foreign Exchange (Forex) market, the domestic unit traded 7 paise lower at 46.78 a dollar. The rupee had ended one paise down at 46.71/72 against the dollar on Tuesday after the BSE benchmark Sensex ended 220.39 points, down as sentiments remained low with investors fearing that a rate hike is imminent now on back of rising inflation.
Inflation for November rose to 4.78% from 1.34% in October.
Forex dealers said dollar's gains against other currencies and fears of more capital outflows by foreign funds amid weak Asian markets, mainly weighed on the Indian rupee.