The Indian rupee depreciated by 11 paise against the dollar in early trade on Thursday tracking weak Asian currencies and increased demand for the USD from importers, but forex dealers say the trend may reverse later in the day.
In active trade at the Interbank Foreign Exchange (forex) market, the domestic currency weakened by 11 paise to quote at 47.35 over its previous close of 47.24/25.
The local unit had closed strong by 24 paise yesterday. Forex dealers said a strong greenback against a basket of Asian currencies and increased demand for the dollar from importers affected the rupee sentiment.
However, they said, the rupee may gain strength later in the day as foreign institutional investors are expected to continue putting in money in the domestic equity markets.